Thursday, 31 January 2019 11:39

Aegon director blasts ‘unfair’ £175m FSCS levy

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Steven Cameron Steven Cameron

A director at Aegon has blasted today’s revelation that advisers will have to pay £175m in levy payments to the FSCS as “unfair”.

Steven Cameron, the firm’s pensions director, lambasted the decision to impose the charge in relation to an increase in claims relating to unregulated and risky SIPPs investments.

He said: “The FSCS expects to see further increases in claims connected with advice on unregulated, high risk investments within SIPPs.

 

“This means the adviser profession, the vast majority of whom have never made such recommendations, are paying for the unsuitable advice of the very few, which doesn’t seem fair.

“Furthermore, the FSCS plays a key role on boosting consumer confidence, something which benefits both advisers and providers. For these reasons, Aegon lobbied for, and now welcomes, providers paying a 25% share of intermediary levies.”

But Mr Cameron did praise cooperation between the FSCS and the FCA to attempt to prevent failures and unsuitable advice in the first place.

“Of course, it would be in everyone’s interest if failures or unsuitable advice never happened so we’re pleased to see the FSCS will continue to work with the FCA and others to identify emerging areas of concern to tackle the root cause, preventing future compensation claims, which should lead to lower levies,” he added.

 

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Last modified on Thursday, 31 January 2019 11:45
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