The Financial Services Compensation Scheme (FSCS) has announced that it will levy firms £363 million in 2017/18, £15 million less than it forecast in its Plan and Budget 2017/18 in January 2017. This includes management expenses of £69.2 million. The FSCS notes that the levy on life and pensions advisers remains unchanged at £100 million, but general insurance intermediaries will pay £5 million more, and investment intermediaries £4 million more, than the FSCS forecast. The FSCS’ current estimate of compensation costs for 2017/18 is £146 million, compared with the January 2017 forecast of £163 million. This is due to a fall in the average cost of SIPP-related claims. However, the FSCS will keep this figure under review and, if needed, will raise a supplementary levy later in 2017/18 to cover compensation costs above the £100 million limit.
View FSCS confirms 2017/18 final levy, 12 April 2017