Others are charging up to three times as much to mitigate FSCS fees, Reid says

Bluefin has launched a mandatory £25 per-policy administration fee, partly in response to the spiralling cost of FSCS contributions now facing all brokers.

Chief executive Stuart Reid said the charge, which was initially introduced last year, became mandatory from 1 March.

He said: “In part, this is to mitigate the extra fees we are seeing coming out of the FSCS.”

Reid added that the introduction of administration fees was widespread, with some brokers charging two or even three times as much as Bluefin.

FSCS fees are set to rise by up to 50% in June, with further hikes expected. The cost has been fuelled by high levels of compensation for the victims of mis-selling by general insurance intermediaries – often credit brokers.

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