PIMFA welcomes significant reduction in FSCS levy

23 May 2024

 

PIMFA welcomes significant reduction in FSCS levy

PIMFA, the trade association for wealth management, investment services and the financial advice and planning industry, has today (23 May 2024), welcomed news of a reduction in the annual Financial Services Compensation Scheme (FSCS) levy for 2024/25 from the forecast £415m in November 2023 to £265m today.

Simon Harrington, Head of Public Affairs at PIMFA, commented: “We welcome the reduction of the annual FSCS levy for 2024/25. This will come as welcome relief for firms and reduce their outgoings for the coming year allowing them to focus investment internally rather than on servicing the cost of regulation.

 

“We are particularly pleased to see that the FSCS has managed to recover a significant amount from failed firms over the reporting period and this is something which we would like to congratulate the FSCS on.

 

“We have always been clear that more focus should be placed on recovery in pursuit of reducing the levy and while we accept that recoveries are difficult and even harder to plan for, this represents significant progress on behalf of the FSCS and the Levy more generally.”

 

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Notes for Editors

About PIMFA – the Personal Investment Management & Financial Advice Association

• PIMFA is the trade association for firms that provide wealth management, investment services and the investment and financial advice to everyone from individuals and families to charities, pension funds, trusts and companies.
• In May 2023 PIMFA was named as one of the Best Places in the UK to work by The Sunday Times.
• The sector currently looks after £1.65 trillion in private savings and investments and employs over 63,000 people.
• PIMFA represents both full and associate member firms. Full members provide a range of financial solutions including financial advice, portfolio management, as well as investment and execution services. They assist everyone from individuals and families to charities and pension funds, all the way to trusts and companies.  Associate members provide professional services to the PIMFA community.
• PIMFA leads the debate on policy and regulatory recommendations to ensure that the UK remains a global centre of excellence in the wealth management, investment advice and financial planning arena. Our mission is to create an optimal operating environment so that its member firms can focus on delivering the best service to clients, providing responsible stewardship for their long-term savings and investments. 
• PIMFA has made numerous recommendations to the FCA regarding the Future of Advice, Future of Supervision and the FSCS levy – read more.
• PIMFA was created in 2017 as the outcome of a merger between the Association of Professional Financial Advisers (APFA) and the Wealth Management Association (WMA) with a history as a trade association since 1991 – read more.
• Further information can be found at pimfa.co.uk

Contact

For further information on this release or other press matters please contact:

Matthew West, PIMFA PR Manager – MatthewW@pimfa.co.uk, +44 (0)20 7382 0376

Sheena Gillett, PIMFA Communications & PR Director – sheenag@pimfa.co.uk, +44 (0)20 7011 9869 / +44 (0)7979 49322