FSCS announce no interim levy for 2013/14
27th February 2014
The Financial Services Compensation Scheme (FSCS) has announced that it no longer expects to raise an interim levy on investment intermediaries for 2013/14. The move follows a review of the number of claims coming in and the timing of compensation payments.
Following publication of our Plan and Budget 2014/15, FSCS indicated that it expected to raise an interim levy on investment intermediaries of £30m. This was because of an expected increase in compensation costs resulting from claims against Catalyst Investment Group Limited and Fyshe Horton Finney Limited.
Since then we have updated our assumptions about which claims we will process in this financial year, and the next. We now expect to start processing claims against Catalyst Investment Group Limited slightly later than previously thought, with most of these costs to fall into 2014/15.
Mark Neale, FSCS Chief Executive, said: "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. We still expect claims relating to Catalyst Investment Group Limited during the 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."