Changing Financial Institution Funding Levies
Published / Last Updated on 02/09/2020
The Financial Conduct Authority, the Financial Ombudsman Service, the Financial Services Compensation Scheme, the Money and Pension Service, the Money Advice Service and Pension Wise are all funded by levy on financial services companies and pension schemes. It has created an imbalance on organisations like financial advisers and mortgage brokers paying levies to fund organisations that they may never use or need to refer to.
This is simply not equitable as increasing costs in their millions are ultimately paid for by financial advisers and therefore, their clients in the form of higher fees.
A number of lobby groups from professional bodies are putting pressure on MPs, Government and the Financial Conduct Authority to revisit and change how they are funded.
Cost pressures on financial advisers are simply to much compared to the value that advisers get out of this.
