FSCS ditches interim levy for 2013-14

Following a review of its budget plan, the FSCS will no longer raise an interim levy on intermediaries for 2013 and 2014.

FSCS ditches interim levy for 2013-14


This decision follows a review of the number of claims coming in and the timing of compensation payments.
Originally, in the first publication of its budget plan for 2014/2015, the FSCS had indicated it expected to raise an interim levy on investment intermediaries of £30m. This was due to an expected increase in compensation costs resulting from the claims of Catalyst Investment Group and Fyshe Horton Finney. 
“New information on the volume and timing of claims suggests we do not need to levy the industry for more money during 2013/14. That is good news for firms,” chief executive Mark Neale, said.
However, additional costs will fall into the 2014/2015 period due to delays in processing claims. The FSCS has delayed processing the claims against Catalyst Investment Group, with most costs falling into next year. 
“We still expect claims relating to Catalyst Investment Group Limited during next year. So, we will update the industry when we have more information on what this change means for 2014/15 when we announce the levy in April,” Neale added. 



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