81% of advisers back risk-based FSCS levies

An overwhelming 93% believed that firms involved with riskier unregulated products should pay a higher share of levies.

Three-quarters of advisers were also in favour of life and pension providers and platform companies paying a greater share of the bill linked to their product types, with similar support, 67%, calling for fund managers to contribute more for claims linked to investment aspects.

However, there is little support for advisers paying more for a few years, for example to build up a fund, to reduce future volatility, which supports the FCA’s reluctance to take that approach, with only 18% supporting this approach.

Mark Till, Chief Distribution and Marketing officer at Aegon, commented: “The findings offer important insights into intermediary views which we will share with the FCA as part of our consultation response.

“The FSCS levies are clearly an area of concern amongst intermediaries and there’s a real strength of feeling coming through. With Sipp claims last year resulting in £77m of compensation payments, in part due to investments in unregulated collective investment schemes, it’s no wonder there are strong calls for risk based levies. The FCA consultation is a real opportunity to improve the sustainability of the intermediary sector, one of the aims of the Financial Advice Market Review.

“Intermediaries are also supportive of the FCA plans to review the PII market with mixed views on how satisfactory current PII is.

“Aegon believes the FSCS scheme delivers benefits to all players in the market by increasing consumer protections and confidence. This is why we believe both providers and fund managers should pay a greater share of the overall levy bill.

“Aegon is committed to work with our Advisory Board and Panel to gain deeper insights into the views of advisers and intermediaries and to represent their interests in our contacts with regulators and Government.”