The Financial Services Compensation Scheme levy may be one of the issues which most vexes advisers who run their own firms.

Indeed the overall FSCS levy has increased in nominal terms from less than £300m in 2011-12 to an expected levy of £717m in 2021-22.

The Financial Conduct Authority has accepted this situation is not ideal and it has admitted the burden of the levy has fallen on firms which have done nothing to bring about these liabilities.

So now the regulator has set out plans to address this by tackling the root cause of high FSCS costs through a more stringent appointed representative regime, reforms to prudential rules and the prospect of a risk-based levy.

This week FTAdviser digital editor Damian Fantato is joined by Tim Fassam, director of government relations and policy at Pimfa, and Claudia Clay, risk and regulatory director at The Private Office, to discuss the proposals.

They discuss the FCA's proposal that high-net worth individuals could be ineligible for compensation, whether the scope of FSCS protection should change and whether a risk-based levy is ever likely to see the light of day.

The FTAdviser Podcast is the weekly podcast for financial advisers, brought to you by FTAdviser. Each week, FTAdviser is joined by guests from the industry to discuss the week in news and pressing industry issues.

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