Extra 25% provider levy misses 'realities of adviser failure' - ABI

Reaction from insurers

Hannah Godfrey
clock • 3 min read

The 25% contribution providers will now have to pay towards advisers' Financial Services Compensation Scheme (FSCS) bill "does not reflect the realities of adviser failure," according to the ABI.

This morning the Financial Conduct Authority (FCA) confirmed providers would be required to contribute 25% of life and pensions and investment intermediaries' FSCS levies. The Association of British Insurers (ABI) expressed disappoinment with the decision to proceed with its proposal to levy providers alongside advisers, with director of regulation Hugh Savill saying: "It does not reflect the realities of adviser failure and does not ensure those responsible are the ones who pay. "The FCA needs now to focus on ensuring fewer advisers fail so the cost on the FSCS is reduced rather than...

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

Most firms unable to meet bereavement claims performance levels: FCA

Most firms unable to meet bereavement claims performance levels: FCA

Call for improved bereavement handling times

Cameron Roberts
clock 22 November 2024 • 3 min read
Record-high receipts for IPT and employer NICs

Record-high receipts for IPT and employer NICs

HMRC data

Cameron Roberts
clock 21 November 2024 • 2 min read
Chancellor targets FOS modernisation and FCA consultation

Chancellor targets FOS modernisation and FCA consultation

Consultation part of the advice guidance boundary review

Isabel Baxter
clock 15 November 2024 • 3 min read