PIMFA Criticises FSCS £300M Levy
Thursday 31st January 2019
PIMFA, the trade association for investment managers and financial advisers, has strongly criticised the level of the indicative levy for 2019/20 following the publication of the Financial Services Compensation Scheme (FSCS) plan and budget.
The FSCS Plan and Budget shows increasing levies for life distribution, pension and investment intermediation class (£240m) and an unchanged position for the investment provision (discretionary) class (£59m) for 2019/20. The extreme short notice of this bill in just eight weeks before the year end upsets profit forecasts and business operations.
Ian Cornwall, Director of Regulation at PIMFA, commented:
“Yet again we have an ongoing and ever increasingly high levy. We question the effectiveness of FCA’s supervisory approach and whether a proper analysis is being undertaken as to the reasons why claims are arising, in order to mitigate future claims. FCA’s supervisory approach must be more proactive in quickly taking action to address the root causes of the claims that result in unsustainable FSCS levy increases.
‘The FSCS levy is a major cost burden on all firms large and small and is considered by firms to be a cost of regulation – the current level of levies is unacceptable and not sustainable. Urgent work needs to be done to prevent failure of firms that leads to calls on the FSCS”
Notes for Editors
About PIMFA – the Personal Investment Management & Financial Advice Association
- PIMFA is the leading trade association for firms that provide investment management and financial advice to everyone from individuals and families to charities, pension funds, trusts and companies.
- PIMFA represents both full and associate member firms. Full members provide a range of financial solutions including financial advice, portfolio management, as well as investment and execution services. They assist everyone from individuals and families, to charities and pension funds, all the way to trusts and companies. Associate members provide professional services to the PIMFA community.
- PIMFAleads the debate on policy and regulatory recommendations to ensure that the UK remains a global centre of excellence in the wealth management, investment advice and financial planning arena. Our mission is to create an optimal operating environment so that its member firms can focus on delivering the best service to clients, providing responsible stewardship for their long-term savings and investments.
- PIMFA was created in 2017 as the outcome of a merger between the Association of Professional Financial Advisers (APFA) and the Wealth Management Association (WMA) with a history as a trade association going back for 27 years – read more.
For further information on this release or other press matters please contact: