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FSCS says majority of firms will pay less than £50

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  • 05/07/2019
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FSCS says majority of firms will pay less than £50
The Financial Services Compensation Scheme (FSCS) has projected that of the 46,000 firms which contribute to its levy, 59 per cent will pay less than £50.

 

In its indicative figures published today for the current financial year, the FSCS added that more than 4,500 firm will receive a rebate of £139 instead of paying a fee.

In contrast, the top 110 firms which comprising 0.2 per cent of the total levy paying population, will pay an average of £3m, almost 61 per cent of the total levy bill.

The FSCS said these were the current forecasts although it may be necessary to raise additional levies.

 

Rising SIPP claims

FSCS CEO Caroline Rainbird said the regulator did not take the impact of its levy for granted and recognised it could be a significant and unwelcome expense for many firms.

“The levy enables FSCS to protect thousands of people each year who have nowhere else to turn when financial service firms fail,” she said.

“To reduce costs to levy payers we pursue recoveries from the estates of failed firms, and in 2018/19 we recovered £26m.

“We also believe that our strategy, FSCS into the 2020s: Protecting the Future will help to further reduce future levies. It focuses on four pillars: prepare, protect, promote and prevent.”

Rainbird also noted that with the continued rise in self-invested personal pension (SIPP) related claims the FSCS was trying to gain valuable insight into the causes of firm failures and about the directors and advisers involved in mis-selling.

 

 

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