Investment advisers hit with additional £7m FSCS levy bill

Most types of financial services firms will pay a lower than expected Financial Services Compensation Scheme (FSCS) levy for 2014/15 after it cut its bill by £37m, but investment advisers face another hike in costs.

Investment advisers will see their section of the levy rise from an initial projection of £105m to £112m for the year, with one-off costs impacting the figure. These include the cost of claims on ARM bonds distributor Catalyst, after the FSCS deferred a potential interim levy of £30m in 2013/14. Those working in home finance intermediation will also see their FSCS levy increase. However, fund managers can expect a rebate, it said, as a result of successful recoveries relating to the failure of Keydata. The organisation said its final overall levy would be £276m, down from the pr...