FSCS reveals early forecast of no broker levy in 2026/27
The Financial Services Compensation Scheme has indicated brokers will not have to pay a levy in 2026/27 which would keep the rate at zero for the fourth year in a row.
The FSCS detailed the general insurance distribution class in which brokers sit has only caused £400,000 of compensation costs to be paid out in 2025/26 so far with no large bills on the horizon.
When the compensation scheme set the broker levy at nil for 2025/26 the sector had a surplus of £4.6m.
Our recoveries help to offset the levy for firms and ensure those most responsible for financial harm are held to account.Martyn Beauchamp, CEO of the FSCS
After the low compensation payouts, and
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