Levy is £38m for 2014/15, compared with £62m expected

Biba has welcomed the 39% reduction in the 2014/15 Financial Services Compensation Scheme (FSCS) levy on brokers to £38m.

The FSCS had expected to charge brokers £62m, according to the plan and budget it released in January, which would have been a 15% increase on the £54m the scheme charged brokers in 2013/14.

Biba chief executive Steve White said: “We are pleased that the levy for members has reduced by nearly 40% compared with the budgeted figure, and by nearly 30% compared with last year’s charge.

“We were concerned that the figure was too high, and that with PPI [payment protection insurance] claim activity slowing down, the levy should reflect this too.”

Overall, the final FSCS levy across all financial services firms has been cut to £276m from £313m. Biba said the cut in the general insurance intermediary sub-class was one of the major changes.

White added: “This is great news for brokers for this summer’s bills. However the FSCS issue is ongoing. We will continue to fight on for further FSCS fairness for members. We have our alternative funding model drawn up and ready for the next opportunity to push for a review of the current unfair system.”

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