Levy On Finance Firms Hiked To £649M For Minibond Costs

Law360, London (May 21, 2020, 11:57 AM BST) -- Britain's bankruptcy compensation program said Thursday that finance companies will be required to pay £649 million ($795 million) in fees for 2021 — an increase of £14 million from the levies estimated in January.

The extra fees now come to £101 million more than lenders and insurers paid for 2020. The Financial Services Compensation Scheme said the hike is largely the consequence of the estimated £44 million cost of paying compensation after the high-profile collapse of London Capital & Finance, a minibond investment fund,in 2019.

But the compensation program said it had found savings elsewhere to bring the net increase in fees...

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