FSCS will levy firms £363m this year

The levy included management expenses of £69.2m, while the total amount is £26m higher than the figure for 2016/17 (£337m).

Mark Neale, chief executive of FSCS, said: "FSCS exists to help people with nowhere else to turn when financial services firms fail.

“We protect thousands of people every year and provide compensation which the industry funds.

“This helps to generate consumer confidence.”

FSCS's forecast of compensation costs is £146m, down from its earlier forecast of £163m.

However, if needed, the FSCS will raise a supplementary levy later in the year to cover compensation costs above the £100m limit.

General insurance intermediaries will pay £5m more and investment intermediaries £4m more than the FSCS’s earlier forecast.

The levy on life and pensions advisers will remain unchanged at £100m.

Mark said although the indicative forecasts published in January and the final levy numbers this year are broadly similar, firms know that the levies can be unpredictable.

“We know that many are also engaged in the ongoing FCA review of the FSCS funding model, and encourage a full debate to settle the basis of FSCS funding for the foreseeable future."