IA comments on FSCS Plan and Budget 2021/22
Friday 22 January 2021
Commenting on the FSCS' Plan and Budget for 2021/22, Chris Cummings, Chief Executive of the Investment Association, said:
“The investment management industry contributes significantly to the FSCS levy. In line with the FSCS’s new Budget and Plan, investment managers are now being asked again to make further substantial contributions as part of the overall forecast level - which is set to rise an astonishing 48%.
“This forecast does not support the fair ‘polluter pays’ principle, where those responsible for damage pay to repair it. Instead it effectively requires our industry to take responsibility for covering the costs of businesses we have little control over, and increasingly acts as a deterrent for firms looking to build their businesses in the UK.
“There is no doubt consumer protection is essential. But urgent reform is needed to address the ever-rising levy and to ensure the FSCS is proportionate on the sectors that contribute, rather than being an unwelcome cost of doing business in the UK.”
For further information, please contact:
Katie Martin, Head of Communications: [email protected]
T: +44 (0)20 7269 4655
Helen Ayres, Communications Manager: [email protected]
T: +44 (0)20 7269 4620
David Parton, Communications Executive: [email protected]
T: +44 (0)20 7269 4625
IA press office: [email protected]
T: 020 7269 4696
About the Investment Association (IA):
- The IA champions UK investment management, supporting British savers, investors and businesses. Our 250 members manage £8.5 trillion of assets and the investment management industry supports 113,000 jobs across the UK.
- Our mission is to make investment better. Better for clients, so they achieve their financial goals. Better for companies, so they get the capital they need to grow. And better for the economy, so everyone prospers.
- Our purpose is to ensure investment managers are in the best possible position to:
- Build people’s resilience to financial adversity
- Help people achieve their financial aspirations
- Enable people to maintain a decent standard of living as they grow older
- Contribute to economic growth through the efficient allocation of capital.
- The money our members manage is in a wide variety of investment vehicles including authorised investment funds, pension funds and stocks and shares ISAs.
- The UK is the second largest investment management centre in the world, after the US and manages over a third (37%) of all assets managed in Europe.