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The Financial Services Compensation Scheme (FSCS) has set its final levy at £337m for the 2016/17 financial year, £26m less than the indicative forecast in its Plan and Budget published in January. Management expenses for the FSCS fall for the second successive year and will total £67.4m in 2016/17.
The general insurance intermediation sector (SB02) will pay a levy of £8m, down from the £19m forecast in January, thanks largely to greater stability in the level of compensation expected to be paid out resulting in reduced volatility, according to the latest edition of Outlook.
Steve White, BIBA’s CEO, said: “It is positive news that the levy isn’t as high as had been projected, however we still believe the cost of failures of insurance brokers to be far less than the sum our members are being asked to pay.
“The fact brokers are picking up the tab for credit brokers who mis-sold PPI is the fundamentally unfair aspect of the scheme. This is why we are engaging with and pushing for reform in the forthcoming review of the scheme, as announced in the Financial Conduct Authority’s business plan for the year.”
Mark Neale, CEO of the FSCS, said of the funding review: “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.”
Firms will receive their annual levy bills from July 2016 which are payable within 30 days from the date on the invoice. The FCA has put in place funding arrangements to help those firms wishing to spread the cost of fees and levies payments. More details of these arrangements are available from the FCA website.
BIBA members’ compliance and regulation queries should be directed to: compliance@biba.org.uk
The post FSCS sets final levy for GI intermediaries for 2016/17 appeared first on British Insurance Brokers' Association.
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