The Financial Services Compensation Scheme (FSCS) levy on brokers will be £400,000 less than initially predicted.

The initial levy on brokers will be £1.3m in 2005/2006, down from the initial prediction of £1.7m, the FSCS said.

How the levy will be apportioned between brokers has yet to be set.

The levy on insurers will be £78m, down from the initial prediction of £95m for 2005/2006. Last year the levy on general insurers was £139.7m.

The FSA said it will finalise its fees for 2005/2006 “shortly” and will issue invoices covering FSA fees, FSCS and Financial Ombudsman Service levies from June.