FSA 'very conscious' of industry feeling on FSCS levy

Nicola Brittain
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The FSA has said it is "very conscious" of the strength of feeling from financial advisers regarding the Financial Services Compensation Scheme (FCSC) levy in a written response to a recent petition from the FSCS Action Group.

The letter from FSA managing director Martin Wheatley said it would take this into consideration during the industry consultation on the matter due later this year.

The FSCS announced it would raise a £60m interim levy from financial advisers and other investment intermediaries in March and companies were given 30 days to pay the fees.

The letter from FSA managing director Martin Wheatley was addressed to managing director of Informed Choice Martin Bamford who co-ordinated a petition on behalf of the FSCS Action Group which last month delivered 1,421 IFA signatures to the FSA criticising the way the levvy is raised.

The campaign called for better categorisation of firms within the FSCS funding model.

It said that they way investment intermediation and investment fund managers are currently defined means the collapse of providers and stockbrokers is paid for by intermediaries and fund managers.

The letter also stated that "role of regulator to minimise calls on IFAs from the FSCS" and it called on the industry to "warn it of problem areas before they arise"

"We are aware the IFAs have been hit very hard by recent failings in the industry and we are open to hearing all views," it continued.

Bamford said he was very pleased to receive the letter which he considered to be supportive.

 

 

 

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