Investment advisers' FSCS levy rises to £78m

Investment intermediaries must stump up an extra £2m towards the Financial Services Compensation Scheme (FSCS) levy for 2013/14, taking their annual levy contribution to £78m.

The FSCS has cut its overall levy for 2013/14 to £285m, down £26m from the £311m it announced in February. It follows an up-to-date analysis of claims paid in the previous year and claims assumptions for 2013/14, the FSCS said. However, while all other businesses across the FSCS classes will see a cut in their levy, firms in the investment intermediation sub-class will see an increase in their levy of £2m - taking their annual levy total to £78m. This is due in part to major investment default claims such as MF Global UK Limited, Worldspreads Ltd and Pritchards Stockbrokers Limited...