The FCA plans to increase the life and pensions levy by £171m next year to fund the Financial Services Compensation Scheme (FSCS) and the consultation period closes at the end of the month.
First Complete and Pink have urged appointed representatives to fight the industry’s corner by responding to the Financial Conduct Authority's consultation paper on levies.
The FCA plans to increase the life and pensions levy by £171m next year to fund the Financial Services Compensation Scheme (FSCS) and the consultation period closes at the end of the month.
The FCA has increased the amount levied every year since 2012, as Pink and First Complete warned this latest increase would affect profits and could be passed down to customers in the form of higher prices and indirect service charges.
Toni Smith (pictured), sales operations director of First Complete and Pink, said: “The FSCS’s life and pensions levy is drastically increasing the cost of doing business for mortgage businesses each year.
“Mortgage and protection intermediaries are having to factor in the cost of insuring pensions products - products they are not even licenced to sell - into their business models.
“With the number of pensions compensation claims forecast to rise, these costs will inevitably trickle down to customers. Brokers therefore have a responsibility to engage with the FCA’s consultation paper to ensure that their customers don’t foot the FSCS bill.”
Brokers can respond to the FCA’s consultation paper here and answer Q14: What are your views on the different funding classes we have set out here? Do you have any alternative proposals?
