The Financial Services Compensation Scheme (FSCS) will levy firms £363m this year, £15m less than it forecasted in its budget in January, however investment advisers will pay £4m more, the service has said.
The cuts came after the service downgraded its forecasted compensation costs from pension-related products such as self-invested personal pensions (SIPP), which were reduced from an initial forecast of £163m to £146m. General insurance costs were also down. SIPPs account for about 93% of the costs in this class and saw their forecasted average claim value reduced from £36,000 to £32,000. A supplementary levy on the sector also helped reduce costs for the last year by about £9m. Despite this, the levy on life and pensions advisers will remain as forecasted at £100m to account for the...
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