Chris Elmore – 2016 Parliamentary Question to the HM Treasury

The below Parliamentary question was asked by Chris Elmore on 2016-09-05.

To ask Mr Chancellor of the Exchequer, if he will make an assessment of the effect of recent increases in Financial Services Compensation Scheme levies on small businesses.

Simon Kirby

The Financial Services Compensation Scheme (FSCS) is an independent non-governmental body. The Prudential Regulation Authority (PRA) and Financial Conduct Authority (FCA) determine the maximum level at which the FSCS levy is set, and how it should be apportioned across industry. The FSCS sets annual levies within these limits.

In March 2016 the Government and FCA published the Financial Advice Market Review which observed that the unpredictable nature of the FSCS levy can make it hard for independent financial advisors to plan effectively. It recommended a number of options regarding FSCS funding, which could make the levy more manageable for independent financial advisors. The FCA is currently reviewing FSCS funding and will publish a consultation later this year.