Adviser FSCS bills set to fall as FCA works to stabilise levy

FCA’s Consumer Strategy Paper

clock • 3 min read

The Financial Conduct Authority (FCA) has set out plans to stabilise the £833m Financial Services Compensation Scheme (FSCS) levy as part of its Consumer Investment Strategy paper.

The regulator said it would also target a year-on-year reduction in the life and distribution and investment intermediation funding classes from 2025 and 2030. To achieve this it said it would strengthen the appointed representative (AR) regime, on which it will consult later this year, in a bid to raise the quality of financial advice. It added it would review the compensation framework to ensure that it remains "proportionate and appropriate", particularly where firms fail leaving behind compensation liabilities for the FSCS to address. This will reduce the cost and impact of poor a...

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