Tom Ellis: MPs give us hope for FSCS levy progress but the FCA whisks it away

Nikhil Rathi grilled by MPs

The simple fact the Treasury Select Committee thought rising FSCS levy costs for advisers were important enough to raise the issue with the FCA chief is an encouraging sign, writes Professional Adviser editor Tom Ellis, but the regulator is keen to smother any hope with a damp cloth.

The FCA chief executive Nikhil Rathi's (virtual) visit to Parliament on Wednesday was labelled as an "accountability" hearing. In essence, then, the MPs of the Treasury Select Committee were simply putting him through his paces on the latest themes and topics the FCA may be struggling with. With that in mind it was a pleasant surprise to hear the question come through on financial advisers and soaring Financial Services Compensation Scheme costs. Indeed, it will have been welcome news for those firms who received increases upwards of 50% in regulatory bills through the mail towards...