Friday, 18 January 2013 11:10
FSA conducts further consultation on FSCS funding model
The Financial Services Authority is further consulting on funding for the Financial Services Compensation Scheme.
In July 2012, the FSA proposed maintaining existing funding classes but using new annual thresholds based on affordability. Both these proposals will be adopted and will come into force when the FSA is replaced by the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) on 1 April 2013.
In its latest consultation paper CP13/1 FSCS Funding Model Review, the FSA said the annual claims limit paid by investment advisers would go up by £50m to £150m.
{desktop}{/desktop}{mobile}{/mobile}
The FSA also proposed setting up a retail pool, a collective resource funded by advisers and investment providers which would be triggered if one or more classes reached their threshold.
A month-long consultation is being opened today on a proposal that all providers should make contributions when the pool is triggered by the failure of an intermediary. This would include contributions from banks, insurers and home finance providers.
Sheila Nicoll, FSA director of conduct policy, said: "We have listened to industy concerns and want your input on this revised approach for the FCA Retail Pool. Finding consensus on this subject was always going to be a challenge but we remain committed to finding a workable solution that firms can afford and live with."
The consultation on the retail pool will end on 18 February.
• Want to receive a free weekly summary of the best news stories from our website? Just go to home page and submit your name and email address. If you are already logged in you will need to log out to see the e-newsletter sign up. You can then log in again.
In July 2012, the FSA proposed maintaining existing funding classes but using new annual thresholds based on affordability. Both these proposals will be adopted and will come into force when the FSA is replaced by the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) on 1 April 2013.
In its latest consultation paper CP13/1 FSCS Funding Model Review, the FSA said the annual claims limit paid by investment advisers would go up by £50m to £150m.
{desktop}{/desktop}{mobile}{/mobile}
The FSA also proposed setting up a retail pool, a collective resource funded by advisers and investment providers which would be triggered if one or more classes reached their threshold.
A month-long consultation is being opened today on a proposal that all providers should make contributions when the pool is triggered by the failure of an intermediary. This would include contributions from banks, insurers and home finance providers.
Sheila Nicoll, FSA director of conduct policy, said: "We have listened to industy concerns and want your input on this revised approach for the FCA Retail Pool. Finding consensus on this subject was always going to be a challenge but we remain committed to finding a workable solution that firms can afford and live with."
The consultation on the retail pool will end on 18 February.
• Want to receive a free weekly summary of the best news stories from our website? Just go to home page and submit your name and email address. If you are already logged in you will need to log out to see the e-newsletter sign up. You can then log in again.
This page is available to subscribers. Click here to sign in or get access.