The Financial Services Compensation Scheme (FSCS) is to raise supplementary levies for 2016/17 on life and pensions advisers, general insurers and mortgage advisers to meet "unforeseen compensation costs", while the scheme will also return a £50m surplus of funds to investment advisers.
Announced alongside the FSCS's Plan and Budget for 2017-18, the supplementary levies are for life and pensions intermediation (£36m), general insurance provision (£63m) and home finance intermediation (£15m). The levy on life and pensions advisers will trigger contributions from firms in other sectors. FSCS chief executive, Mark Neale (pictured) said: "We will ask life and pensions intermediaries to pay their share of an additional £36m to fund compensation for the high numbers of SIPP-related claims we are continuing to receive, but also need to trigger a cross subsidy for the first ...
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