FSCS explains change in levy calculation

The Financial Services Compensation Scheme (FSCS) has confirmed it has changed the way it calculates the interim adviser levy from the number of registered individuals at a firm to the amount of eligible income it generates.

Advisers have reported staggering increases in their interim bills which the FSCS was levied out. The bill is up from £80m last year to £93m.

A spokeswoman for the FSCS says advisers were consulted on the change in 2008. (article continues below)

She says: “It was part of the funding review in 2008 which we were committed to putting in place in the next two years. Advisers were aware of this change to the form.”