FCA joins forces with PIMFA to ease FSCS levy 'burden' on firms

Current levels of FSCS funding “unsustainable”

clock • 1 min read
Current FSCS funding levels 'unsustainable'

Current FSCS funding levels 'unsustainable'

The Financial Conduct Authority has pledged to work alongside Personal Investment Management & Financial Advice Association to help wealth managers and financial advisers stabilise the Financial Services Compensation Scheme (FSCS) by 2025.

The UK regulator said it would work with PIMFA on reducing the levy "burden" on firms between 2025 and 2030, once the FSCS is stabilised. The announcement came on Thursday (11 November), the same day the FSCS lowered its forecast for the levy from an initial £1bn for 2021/22 to £717m. FCA under fire over LV sale Sarah Pritchard, executive director, markets at the FCA, said the regulator was looking to stabilise the FSCS levy by 2025 as part of its "transformation policy". Speaking in a keynote speech at PIMFA's virtual senior leadership summit, she added that the FCA was targeti...

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