The UK House of Commons Work and Pension Select Committee has today heard how the FSCS levy is becoming increasingly unsustainable for advice and wealth management firms.

Tim Fassam, director of policy and government relations for wealth management trade association PIMFA, said the current set up encouraged dodgy firms to deliberately transfer risk onto the levy and fuelled the prevalence of “phoenixing”.

Phoenixing is when firms and individuals deliberately try and avoid their liabilities to consumers or their poor conduct history by closing down firms – or resigning senior positions – only to re-emerge in a di...