No FSCS compensation levy for General Insurance brokers in 2015/16


PRODUCTS3General Insurance brokers will not have to pay a levy to the Financial Services Compensation Scheme (FSCS) in the 2015/16 financial year, according to preliminary calculations.

Insurance Age reports that brokers paid a £38m levy during the 2014/15 financial year.

The scheme said that the reason brokers are not expected to be charged a levy is because of expected falling claims volumes and a higher opening fund balance in the sector.

According to the FSCS plan and budget, financial services firms are expected to be charged a levy of £287m in 2015/16, compared to £276m final levy raised in the previous financial year.

The FSCS stated it will confirm the annual levies in April, following a review.

The news comes after it was revealed earlier this week that the FCA was consulting on FSCS management levy.

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