Invoices to meet the £78 million supplementary levy to cover compensation costs for the Life Distribution and Investment Intermediation class are now being sent to regulated firms by The Financial Services Compensation Scheme (FSCS).
The FSCS is helping smaller firms (with a supplementary levy bill of less than £10k), by giving them 90 days to pay with all other firms having 30 days to pay the levy. Businesses wishing to pay the levy in instalments can do so by partnering with a specialist provider. We predict that increasing numbers will consider spreading the cost.
Roger Brown, Chief Commercial Officer, Premium Credit Specialist Lending commented: Over the last 15 years, we have helped firms fund these additional levies, and their main fees, by offering a credit facility to meet the cost through convenient monthly payments rather than having to pay the amount in one, large transaction. More and more FCA regulated businesses are using our payment facility to help preserve valuable cash flow, particularly during the tough trading conditions of late.
With the country and the world in the grips of a pandemic, some regulated businesses may need to spend their cash reserves in different ways. The opportunity to spread the cost of this additional levy over a number of smaller payments has never been more welcome, helping firms pay on time and avoid incurring additional charges and interest from late payment.”
If the supplementary levy invoice is not paid to the FSCS by the due date, an administrative fee of £250 will be charged, plus interest at a rate of 5% above the Official Bank Rate.
For more information on how we can help finance FSCS levies please contact one of the team on 0344 381 9103 or you can apply directly online at: www.fca.pcl.co.uk .
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Premium Credit is a leading provider of premium finance as well as finance to pay annual fees such as accountancy and school fees. We support over 3000 intermediaries in our chosen markets and help over 2.1 million customers, processing more than 24 million Direct Debits annually.
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