Advisers report huge increases in FSCS bills

Advisers have reported staggering increases in their annual Financial Services Compensation Scheme (FSCS) bills, by as much as 756%.

Philip Milton
Philip Milton

Firms are facing a sharp hit to their profits as the FSCS has today shared out the £93m cost to intermediaries of its interim levy, which mainly covers the failure of Keydata unit Lifemark. Last year’s FSCS interim levy is £80m.

But neither the FSCS nor the FSA could provide an explanation of the scale of the rises reported to Money Marketing, Fund Strategy’s sister publication.

Philip Milton, managing director of Philip J Milton & Company, says his bill was £6,009 last year but today’s bill is 756% higher at £51,459.

He says: “We are not a fund manager in the sense of selling funds and we never promoted a single Keydata product or structured product. It is disgraceful.” (article continues below)

Nick Bamford, the chief executive of Informed Choice, says his bill has shot from £1,300 last year to £10,012 today—a 670% rise.

Skerritt Consultants has seen its bill more than double from £11,000 to £25,100.

Andy Merricks, head of investments at Skerritt, says: “We are clearly not happy as it effectively means we have become victims of our own success.

“Keydata and the like are products we had nothing to do with and we are basically subsidising the miscreants of the industry. I wonder who is paying for the latest FSCS ad campaign?”