Despite expecting a fall in overall claims volumes, the FSCS will therefore levy the life and pensions intermediaries sector £80m.
Additionally, levies on brokers arranging home finance will double from £5m to £10m in 2016/17, while general insurance brokers, who paid nothing in 2015, will now face a £19m levy.
The levies are currently under consultation and will be set in April.
The FSCS' 2016/17 budget said:
"The FSCS received a significant number of claims against independent financial advisers in relation to advice given to transfer funds from existing pension schemes to Sipps. The majority of claims concern advice to invest Sipp funds into high risk, non-standard asset classes, many of which have become illiquid.
"We expect to see further claims in this category along with other types of life and pension claims throughout 2016/17."
Its own operating costs will drop from £69.1m in 2015/16 to £67.4m in 2016/17.
Mark Neale, FSCS chief executive, said:
“I am happy to report that our management and operating costs are lower than last year again.
“It’s an indication of our commitment to value for money. One of our key imperatives is modernising our claims handling system and we have taken steps towards achieving this.
“We are pushing ahead with further changes that will make life easier for consumers. An online portal, through which they can submit claims, is being tested. In time, it will provide a more efficient service that, ultimately, transforms customers’ experience. Overall, we’re moving towards streamlining our claims, reducing management and operating costs, which benefits our levy payers, and creating a better experience for consumers.”
