The Financial Services Compensation Scheme (FSCS) has said it does not anticipate levy increases arising from the administration of BPS Insure.

BPS went into administration in May when the FSA uncovered a deficiency in its client money account during a thematic visit.

The FSCS said it was monitoring the situation and keeping firms involved of any new developments.

"At the moment we are not expecting any levy increases," an FSCS spokeswoman said this week.

Last month the FSA rejected criticisms that it took too long to notify the market of its concerns about the broker.

The regulator discovered the accounts error in April, but it did not reveal concerns until the end of May, leaving BPS' suppliers to build up credit for another month.

Towergate has taken on BPS' commercial and personal lines books, worth £20m GWP.

Included in the book was a special cover for travelling showmen.

Towergate said it was a "profitable" line.