Nearly two-thirds of financial advice and wealth management executives do not trust the Financial Services Compensation Scheme to deliver fair outcomes for consumers or their firms.

According to a survey by trade body Pimfa, levels of trust in the FSCS have remained unchanged, or have not improved in the past five years for 60 per cent of firms.

While anecdotal reports of significant levy increases this year have filtered through from individual firms, the survey is one of the first to try and draw a picture across the market, finding that bills increase by more than 100 per cent for 45 per cent of Pimfa members.

Excluding payroll and premises, FSCS levies now account for at least 20 per cent of all outgoings for more than four-fifths of firms.

FSCS chief executive Caroline Rainbird says the lifeboat fund will be having discussions with adviser representatives to work together on a path forward.

“We know that consumers have a high level of trust in FSCS and we want this to be mirrored by the advisory community,” she says. “It is crucial to tackle the root causes of the problem, not just the symptoms, as this will lead to a sustained reduction in the levy and more relevantly for all concerned – including the industry – an increase in good outcomes for consumers.

“We will continue to meet regularly with all parts of the industry to help achieve these two important elements.”

The survey also reveals the extent of pressure firms are facing from professional indemnity insurance costs. These now amount to 60 per cent of the costs paid by firms to the FSCS and, much like the lifeboat fund, more than a quarter of advisers have seen premiums increase by more than 100 per cent in the last five years.

Over half reported their current PII premiums contained restrictions, including on historic defined benefit transfer advice, leaving firms without cover for advice given before the insurance policy began.

The FCA has previously insisted that it expects advisers to have adequate cover for all business they conduct.