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...

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