Remember that headline in November 2020 from Insurance Age 'Brokers bear the brunt of £51m additional FSCS levy' (Click here to read the full article).
Well, it’s almost time for Brokers to pick up their share of the bill with the additional levy due to be paid in quarter 1. This additional levy is for the Financial Services Compensation Scheme (FSCS) and is going to be around £51m with £29m coming directly from Brokers. This extra charge comes on top of the £18.2m that brokers have already paid into the scheme in 2020.
Over the last 15 years we have helped firms fund these additional levies, and their main fees due during the summer months. More and more FCA regulated businesses, including insurance brokers, are using the facility to help maintain valuable cashflow.
With the country and the world in the grips of a pandemic and with many businesses not able to function with trade diminished due to a third lockdown, it seems that this extra cost might be too much to bear, as David Sparks, Head of Compliance & Training at BIBA stated, “it was not a welcome message”.
We have remained open for business throughout the pandemic, helping you and your customers manage cashflow. For more information on how we can help finance these levies please contact our sales team on: 0344 381 9103 or you can apply directly online at: www.fca.pcl.co.uk