Alpari UK: FSCS announces final levy for 2015/16 at £319m
Today the Financial Services Compensation Scheme (FSCS) announces its levy for 2015/16. The figure stands at £319m. That’s an increase of £32m from the amount forecast in FSCS’s Plan and Budget in January.
The increase is primarily because of a rise in claims relating to self-invested personal pensions (SIPPs). FSCS will levy firms in the life and pensions intermediation sector £100m in 2015/16 to fund the compensation costs for these claims.
There’s good news for firms in other sectors though. The general insurance intermediation sector will not be receiving a levy bill in 2015/16 for PPI claims which have continued to decline.
Although FSCS expects to pay compensation costs totalling £28m for Alpari (UK) Limited in 2015/16, investment intermediation firms will see a decrease in their levy bill. This is because of a reduction in the costs relating to other investment defaults, and an expected increase in recovery forecasts for the coming year (including for Alpari).
FSCS Chief Executive Mark Neale says: “FSCS protects consumers when financial firms fail. We’re there for people who have nowhere else to turn. The annual levy allows us to compensate consumers, and as a result, make a valuable contribution to consumer confidence.”
Since its inception in 2001 FSCS has paid out more than £26bn to more than 4.5m people.
Annual levy 2015/16
| Funding Classes |
2015/16 Final Levy £m |
2015/16 Indicative Levy £m |
Variance £m |
| Deposits (SA01) |
13 |
10 |
3 |
| General Insurance Provision (SB01) |
62 |
68 |
(6) |
| General Insurance Intermediation (SB02) |
– |
– |
– |
| Life & Pensions Provision (SC01) |
– |
– |
– |
| Life & Pensions Intermediation (SC02) |
100 |
57 |
43 |
| Investment Provision (SD01) |
– |
– |
– |
| Investment Intermediation (SD02) |
116 |
125 |
(9) |
| Home Finance Intermediation (SE02) |
5 |
3 |
2 |
| Base Costs |
23 |
24 |
(1) |
|
319 |
287 |
32
|
Source: FSCS – Final levy for 2015/16 at £319m
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