PIMFA chief Liz Field has outlined the huge financial challenges which the current structure of the FSCS means for the adviser sector.
It is probably worth setting out the numbers in full from the article in Money Marketing.
The Financial Services Compensation Scheme recently published its Plan and Budget for 2020/21, which included the proposed levy of a massive £635m, which Field notes involves an increase of £87m on the previous year’s figure.
In a recent PIMFA member survey, she notes that participants reported the range of FSCS contributions, as a proportion of turnover, of between 1 and 10 per cent. The recent FSCS bill showed a 52 per cent rise for advice firms.
PIMFA does appear to have a substantial list of actions, coordinating with other trade bodies, holding a Parliamentary event for MPs, with targeted lobbying to follow, while they are also talking to the FCA board.
They are asking for fundamental reform of the scheme.
It is difficult to secure change especially with so much going on. But you can’t do anything more than advocate for it and it does sound like PIMFA has its ducks in a row at least.
Andrew Bailey, set to become governor of the Bank of England is to be grilled by Treasury select committee next week. His appointment has been questioned by, among others, Gina Miller because of lots of problems that have emerged in the retail market during his tenure at the FCA.
Aegon’s Steven Cameron urges advisers to prepare for the contingent charging ban.
A freedom of information request from Professional Adviser shows that the numbers of firms applying for transfer permissions has fallen dramatically with more than 90 withdrawing their applications in 2019.
Citywire Wealth Managers looks at the funds suffering most from what it calls the violent stock market sell-off.