Mortgages levy reduced by FSCS

04/04/2007

The 2007–2008 initial levy is going to be reduced by FSCS. They are planning to cut it right down by 10 million pounds to 94.5m, with contributions in the A16, A12 and A18 group all parties are taking advantage of the depreciation.

The FSCS concluded that an extra 4.9 million pounds has been sliced from the levy as the timing of certain funds has changed them to 2008-2009, even though FSCS points out factors, the Financial Services Authority (FSA) is in the position to change the future funding agreements of the FSCS, this is also including the A16 contribution.

Chief executive Loretta Minghella of the FSCS, states that: “Since we published our indicative levy earlier this year we’ve reviewed and refined our forecasts for claims volumes and compensation costs.”

She added, “While this is good news for some sectors, we recognise the levy will confirm some tough news for other levy groups. However, having an efficient and cost-effective compensation service is good for consumer confidence and good for the industry as a result."

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