UK financial advisers will see their Financial Services Compensation Scheme (FSCS) levy rise by around 26.4% to £109.8m in 2026/27, up from £87m this year, according to the lifeboat fund’s latest outlook.
The FSCS said that the levy for the Life Distribution & Investment Intermediation class, which compromises financial advisers who advise on life insurance, pensions and investments, is expected to rise “mainly due to a significantly lower opening balance projected for 2026/27”.
Across all sectors, the FSCS expects a total levy of £342m for 2026-2027, with expected compensation costs of £294m. This represents a small decrease on 2025/26.
The FSCS will publish an update on its budget in early 2026.
