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Screenshot of a breaking news alert e-mail from Q2 2017
The Financial Services Compensation Scheme (FSCS), the UK’s statutory compensation scheme for customers of authorised financial services firms, has announced its levy for 2016/17.
FSCS, which is well known to former customers of Alpari (UK) Limited and LQD Markets UK, which fell victims of the Swiss franc spike on January 15, 2015, will levy £337 million in this financial year, a sum which is £26 million lower than forecast in its Plan and Budget for 2016/17, published in January. The levy in 2015/16 amounted to £319 million.
Management expenses decline for a second year in a row. In 2016/17, the budget totals £67.4 million.
Most industry sectors will contribute less in 2016/17 than FSCS forecast in January. The exception is the life and pensions intermediaries sector.
In addition to the overall levy, FSCS will recover interest costs – also £337 million – for Treasury loans for Bradford and Bingley and Kaupthing Singer & Friedlander made during the banking crisis in 2008.
Mark Neale, Chief Executive of FSCS, said:
“The annual levy allows us to compensate customers. That generates consumer confidence and trust in the industry. We look forward to the forthcoming review by the Financial Conduct Authority into how FSCS is funded, and will play our part in discussions. I encourage the industry to play a full role in the debate.”
Since FSCS’s establishment in 2001, more than 4.5 million people have received over £26 billion in compensation claims against the financial services industry.
You can view the full announcement from the FSCS by clicking here.