Advisers' FSCS levy set at £33m

Advisers will contribute £33m towards the total expected cost of running the Financial Services Compensation Scheme (FSCS) in 2012/13, although they will also pay an additional interim levy of at least £40m before April.

The FSCS today revealed the total industry levy will be £221m in 2012/13, up from £217m in the current financial year.

Investment intermediaries will contribute £33m, down from £34m in 2011/12.

However, following up on previous warnings, it said investment intemediaries are likely to be hit with an interim levy of at least £40m by the end of March to plug a deficit caused by compensation payouts related to Keydata, Wills & Co and other high profile failures.

It has also not yet worked out the potential cost of any compensation relating to the failure of MF Global, which could affect both the indicative levy for 2012/13 and the interim levy.

Mark Neale, chief executive of the FSCS, said: "We are working closely with the administrators, KPMG, who are in the process of reconciling the client accounts.

"Until this exercise is complete, we will not know how much compensation is likely to be payable or when. We will keep all interested parties informed of developments."