FSCS levy: Providers to contribute to cost of intermediary failure claims

FCA shies away from product levy

clock • 3 min read

The Financial Conduct Authority (FCA) has proposed product providers pay additional contributions to the Financial Services Compensation Scheme (FSCS) to ease the cost on advice firms, in a consultation published today.

The regulator said it recognised the burden of funding the FSCS does not currently fall equally on product providers and advisers. Therefore it was looking to introduce product provider contributions towards the cost of claims involving advice firm failures, "reflecting the wider responsibilities of product providers in the process", it said.  Product providers already contribute to the FSCS but this is only tapped after other funding streams, including those from intermediaries, are exhausted. Under the FCA's proposals providers would have to pay in from the start, alongside advis...

To continue reading this article...

Join COVER for free

  • Unlimited access to real-time news, key trend analysis and industry insights.
  • Stay on top of the latest developments around health and wellbeing, diversity and inclusion and the cost of living crisis.
  • Receive breaking news stories straight to your inbox in the daily newsletter.
  • Members only access to monthly programme 'The COVER Review'
  • Be the first to hear about our CPD accredited events and awards programmes.

Join now

 

Already a Cover member?

Login

More on Regulation

Budget 26: Protection and health reacts

Budget 26: Protection and health reacts

A missed opportunity

Cameron Roberts
clock 28 October 2026 • 5 min read
IPT receipts hit £4.53bn in H1 2026/27

IPT receipts hit £4.53bn in H1 2026/27

Down £11m year-on-year

Jaskeet Briah
clock 21 October 2026 • 2 min read
IHT receipts reach £4.7bn ahead of Autumn Budget

IHT receipts reach £4.7bn ahead of Autumn Budget

Increase of £300m from the year prior

Isabel Baxter
clock 21 October 2026 • 2 min read