Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what discussions his Department has had with the Financial Conduct Authority on the effect on financial advisor firms of the recent increase in the Financial Services Compensation Scheme levy.

The Government does not have a role in setting the Financial Services Compensation Scheme (FSCS) levy. The FSCS is an independent non-governmental body which carries out its compensation function within rules set by the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA), who are themselves also independent from government.

The Treasury works with the FCA to ensure that the market for financial advice works well. We are aware of concerns about the effect of the increased FSCS levies on financial advisers and we are working closely with the FCA who are monitoring the impact.

The FSCS has said it will be working closely with industry and regulators to understand any concerns about updates to this year’s levies and seek to explore how they can be addressed.