FSCS warns industry levy set to rise to £415m for 2024/25
For 2023/24, total compensation was estimated at £435m and in 2024/25, the FSCS said it expected compensation to total about £457m.
Its latest Outlook publication confirmed this year's levy would remain at £270m, with no additional demands for the rest of the financial year. However, its forecast levy for 2024/25 is a much higher £415m.
It said the «indicative figure is higher than for 2023/24, primarily due to larger surpluses that were carried over from the 2022/23 financial year which reduced the 2023/24 levy to £270m».
FCA scraps plans to exclude retail LTAF from <span "="">FSCS cover
The body also said it had increased its levy for the next financial year as it expected:
It added that estimated compensation costs were comparable between the two financial years.
For 2023/24, total compensation was estimated at £435m and in 2024/25, the FSCS said it expected compensation to total about £457m.
FCA joins forces with PIMFA to ease FSCS levy 'burden' on firms
The FSCS said more than 80% of the total compensation forecast relates to payouts it expected to make in the next financial year for firms that have already defaulted. Under 20% of the compensation forecast relates to firms FSCS expects to fail in the future.
FSCS interim chief executive Martyn Beauchamp said: «I am delighted to have recently joined FSCS and to be providing this important update regarding the current compensation and levy figures. It is an honour to lead such an important and purposeful organisation.
»FSCS directly contributes to trust and stability in our financial services system and makes a genuine difference to consumers' lives. As the current 2023/24 compensation forecast (£435m) remains broadly similar to May's Outlook, we do not expect to
Read more on investmentweek.co.uk
