Why should advisers be picking up the tab for others' mistakes?

Paying for the mistakes of others is the key drawback of the Financial Services Compensation Scheme ...

Paying for the mistakes of others is the key drawback of the Financial Services Compensation Scheme (FSCS). As a principle, the industry agrees with the purpose behind and need for the scheme but when it involves a 27,000%-odd year on year increase in levies, that willingness wanes somewhat. On both sides of the industry, advisers and fund groups alike, face huge increases, mainly because of problems that have sprung from precipice bonds and split caps. Although some adviser firms have defaulted as a result of precipice bonds, most notably the David Aaron Partnership, no investment grou...