News analysis: FCA consultation continues as FSCS hits brokers with levy hike
Industry reels as regulator weighs up options for funding compensation scheme
The Financial Services Compensation Schemes’ (FSCS) plan for brokers to absorb a 62.5% levy increase has triggered criticism by the industry.
In its plan and budget for 2017/18, the FSCS said the levy for general insurance intermediation would increase from £8m last year to £13m. This would fund an expected overall increase in payment protection insurance (PPI) claims.
Funding options
The move comes after the Financial Conduct Authority (FCA) opened a consultation in December into how best to
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