The Financial Services Compensation Scheme (FSCS) is set to announce an £93m interim levy on advisers, Fund Strategy understands.
The levy includes FSCS compensation costs of £86m, mainly to compensate Lifemark investors, and management expenses of £7m.
In addition, investment fund managers are to be billed £233m, meaning the total FSCS interim levy is £326m.
The interim levy comes on top of a £14m compensation bill announced by the FSCS last year—the combined compensation costs breach the total £100m levy that can be imposed on advisers. (article continues below)
The FSCS announced it would compensate Lifemark investors in September 2010, despite the fact the group’s life settlement portfolios continue to run albeit with liquidity issues.
In November the FSCS said it would consider Lifemark’s portfolios to contain no value at all for the purposes of calculating the payouts.
A group of 200 advisers earlier this month lost a judicial review of the FSCS’s decision to classify Keydata as an intermediary and levy the compensation bill on that sub-class.