Ken's column: Advisers must call on FCA for product levy on FSCS funding

18 May 2016

It would be churlish not to welcome the fact that this summer the Financial Conduct Authority is going to have discussions with the industry to try to find a better way of funding the Financial Services Compensation Scheme levy. That the system is grossly unfair to the advisory sector is not in doubt; the issue is: can we find a better way?

Personally, I believe we can. Indeed, given that the system is so fundamentally flawed, almost any change is bound to be an improvement.

However, the reality is that tinkering with the problem will not be enough. We need radical change if we are to find a lasting solution. To his credit, Mark Neale, chief executive of the FSCS, has urged financial advisers to get involved with the debate to create a fairer system. Unfortunately, he then immediately narrowed the opportunity for change by focusing on advisers who are paying a risk-based levy.

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