The FSCS has cut its latest levy forecast by £206m from £1.04bn to £833m but the body has warned that the levy on advisers is unlikely to change.

The Financial Ombudsman is to increase its case fee by £100 to £750, according to its new budget and financial plans published today.

Wealth manager trade body PIMFA has attacked the FSCS forecast today of a £1bn compensation levy as a “scandal” which points to regulation failing consumers and firms.

PIMFA has called on the Government and the Financial Conduct Authority (FCA) to urgently reform the supervision of financial advice and consumer compensation through the Financial Services Compensation Scheme (FSCS).