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.

The Financial Services Compensation Scheme is forecasting a levy for 2021/22 of £1.04bn, up £339m from the £700m raised the previous year due mainly to soaring numbers of claims.

The Financial Services Compensation Scheme (FSCS) has declared 13 firms in default during November and December including several wealth management and Financial Planning firms.

The FSCS has revealed that some compensated clients are losing their money a second time when they invest with another firm which also goes on to fail.