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

IHT receipts hit £3.7bn at the start of FY25

IHT receipts hit £3.7bn at the start of FY25

Marks a rise of £190m

Isabel Baxter
clock 19 September 2025 • 4 min read
PFS membership falls amid pre-tax loss in 2024

PFS membership falls amid pre-tax loss in 2024

Membership numbers down to 38,703

Jenna Brown
clock 18 September 2025 • 3 min read
FCA publishes protection market overview

FCA publishes protection market overview

Prelude to market study findings

Cameron Roberts
clock 17 September 2025 • 2 min read