The Financial Services Compensation Scheme has set its initial levy for 2007/08 at £94.5m...
The Financial Services Compensation Scheme (FSCS) has set its initial levy for 2007/08 at £94.5m, including costs of compensation and management. This is £10m lower than the indicative levy announced when FSCS published its Plan & Budget in January.
The levies for A12 (brokers holding client money), A16 (pensions review), and A18 (mortgage brokers) have been reduced. The others remain unchanged.
The reductions result in part from additional recoveries received in 2006/07 and in part from continuous review and refinement of projections for the coming year based on the current trends and information.
Loretta Minghella, Chief Executive of the FSCS, said: “Since we published our indicative levy earlier this year we've reviewed and refined our forecasts for claims volumes and compensation costs. While this is good news for some sectors, we recognise that the levy will confirm some tough news for other levy groups. However, having an efficient and cost-effective compensation service is good for consumer confidence and good for the industry as a result.”
