25th January 2018
Dear Members PIMFA Bulletin is a fortnightly e-newsletter delivering a snapshot of the latest news and current affairs from within the industry and PIMFA*. *APFA and WMA merged to become PIMFA (the Personal Investment Management & Financial Advice Association) on 1st June.
WHAT IS PIMFA WORKING ON? FSCS We attended the FSCS ‘Plan & Budget Event’ on Friday 19th January to discuss its Plan & Budget for the 2018/19 period. The meeting discussed the Scheme’s expectation for the management costs and initial levy it expects to apply for the coming year, which will include a nine month period ending on 31 March 2019, following which the levy periods will both align with the financial year. The levy it expects to confirm for the coming year will be in the region of £336 million, which is an increase from the £320 million applied over the 2017/18 period. This takes into account the supplementary levy of £24 million and the return of £20 million. The Scheme allowed confirmed during 2018/19 it will be introducing a new single outsource partner to review the majority of FSCS claims and it will announce that new partner shortly. The total amount of FSCS management expenses, to run the Scheme and to pay claims, is expected to be £72.7m which is an increase of £3.5m from the current year. This relates to the higher cost of the FSCS increasing its revolving credit facility to facilitate it funding a seven day pay-out. The Scheme intends to confirm the final levy amount in April 2018.