FSCS increases levy for life and pensions sector
The Financial Services Compensation Scheme has lowered its levy to £337m for 2016/17 - £26m less than its original forecast in January.
However the life and pensions intermediaries sector will pay a levy of £90m – up from a forecast of £80m, which the FSCS says reflects a higher average cost of claims arising from advice about investments in SIPPs.
The levy in 2015/16 totalled £319m, of which life and pensions intermediaries paid 100m.
The FSCS maintains that "most industry sectors will contribute less in 2016/17 than FSCS forecast in January".
In addition to the overall levy, FSCS will recover interest costs – also £337m – from Treasury loans for Bradford and Bingley and Kaupthing Singer & Friedlander during the banking crisis in 2008.
Mark Neale, Chief Executive of FSCS, said:
“The annual levy allows us to compensate customers. That generates consumer confidence and trust in the industry.
“We look forward to the forthcoming review by the Financial Conduct Authority into how FSCS is funded, and will play our part in discussions. I encourage the industry to play a full role in the debate.”
Breaking news
Direct to your inbox:
More
stories
you'll love:
This week's biggest stories:
This week's biggest stories:
Buy-to-let
The Mortgage Works launches sub-3% buy-to-let rates
Tax
HMRC rule change set to impact millions of landlords and sole traders
HSBC
HSBC launches over two dozen sub-4% mortgage rates
Bank Of England
Bank of England cuts interest rates by 0.25% in three-way vote
April Mortgages
April Mortgages launches 7x loan-to-income lending
Skipton
Skipton launches Delayed Start mortgage with no repayments for three months
