Are significant increases in FSCS levies expected for firms in 2006/07?
The FSCS is providing an indication of its current estimated compensation figures and their related funding through levies in its Plan and Budget 2006/07. This is available on the FSCS website at www.fscs.org.uk. Increases in FSCS levies reflect the increases in the number of compensation claims that the FSCS has to pay. Costs are allocated to contribution groups depending on the type of claim. In addition, due to the receipt of significant recoveries from insurance estates and lower than anticipated compensation payments in the insurance sector, the FSCS has announced its intention to distribute £42m to the A3 General Insurance contribution group, in early 2006.
