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Advisers to pick up £15m FSCS management bill

by: Carmen Reichman
  • 20/01/2014
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Advisers to pick up £15m FSCS management bill
Investment advisers may contribute almost £15m towards the day-to-day running of the Financial Services Compensation Scheme (FSCS) in 2014-2015.

The scheme is consulting on its management expenses levy for the period, which comprises the non-compensation costs it expects to incur.

This is separate to the larger amount the FSCS will consult on as part of its plan and budget, which is due out later this week.

For 2014-2015, the FSCS suggests investment intermediaries pay £14.9m towards a proposed budget of £74.7m for management expenses. There is also a contingency reserve of £5.3m, in case its expenses are more than it anticipates.

Figures from the former regulator the Financial Services Authority (FSA) last year show that the cost of managing the FSCS has remained roughly the same.

Last year’s management costs were initially budgeted at £74.4m, albeit with a larger contingency reserve of £20m. Class breakdowns were not available for last year’s budget.

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