Extra 25% provider levy misses 'realities of adviser failure' - ABI

Reaction from insurers

Hannah Godfrey
clock • 3 min read

The 25% contribution providers will now have to pay towards advisers' Financial Services Compensation Scheme (FSCS) bill "does not reflect the realities of adviser failure," according to the ABI.

This morning the Financial Conduct Authority (FCA) confirmed providers would be required to contribute 25% of life and pensions and investment intermediaries' FSCS levies. The Association of British Insurers (ABI) expressed disappoinment with the decision to proceed with its proposal to levy providers alongside advisers, with director of regulation Hugh Savill saying: "It does not reflect the realities of adviser failure and does not ensure those responsible are the ones who pay. "The FCA needs now to focus on ensuring fewer advisers fail so the cost on the FSCS is reduced rather than...

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