The Financial Services Compensation Scheme (FSCS) has published its plan and budget for 2015/16.
The FSCS has announced an indicative levy of £287m for firms in 2015/16. The levy covers compensation and management expenses, excluding the costs of the major banking failures during the financial crisis.
The FSCS expects a reduction in the overall volume of new claims in 2015/16, with the number of claims for payment protection insurance and mortgage endowments expected to fall. However, the FSCS expects to see a significant rise in compensation costs arising from advice to transfer pension savings into self-invested personal pensions.
View FSCS publishes its plan and budget: 2015/16, 20 January 2015