Financial Services Compensation Scheme to raise levy by £11 millionComments Off on Financial Services Compensation Scheme to raise levy by £11 million
It expects a rise in claims from people who were advised to transfer pension savings into self-invested personal pensions and higher claims for hearing loss and asbestos-related illness against long-defunct insurance companies.
The levy, charged on banks, insurers and a wide range of financial advisory firms, will rise from £276 million to £287 million in the financial year 2015-16.
Mark Neale, chief executive of the FSCS, said: “FSCS is there for consumers when firms fail. It makes a valuable contribution to consumer confidence as a result.
“During 2015-16, we will again come to the aid of thousands of consumers when firms go bust. We take our accountability to levy payers very seriously.”
He said that he expects PPI and endowment mortgage claims to continue to fall over the coming year. The overall total of new claims is predicted to decline from just over 28,000 to less than 26,000.
There is good news for general insurers who are likely to pay no levy having forked out £38 million last year. This is because their part of the scheme ended the year in surplus and it is expected that claims against them will fall.