The Financial Services Compensation Scheme (FSCS) plans to collect a levy of £287m from firms in 2015-16, as it prepares for a rise in claims related to self-invested personal pensions (SIPPs).
The levy covers compensation and management expenses, excluding the costs of the major bank failures of 2008/09. It compares with total levies so far in 2014-15 of £276m. The FSCS said it expects a reduction in the overall volumes of new claims in 2015-16, down to 25,590 compared to 28,108 in 2014-15, with the number of claims for PPI and mortgage endowments expected to fall. But the FSCS is preparing for a significant rise in compensation costs arising from advice to transfer pension savings into SIPPs. The scheme said it expects new claims against investment intermediaries to ...
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