The Financial Services Compensation Scheme has appointed three new non-executive directors to the FSCS board, including a former Secretary of State and a former chief operating office at Aviva.

The news comes as the FSCS faces increasing scrutiny over its rising levy to pay for failed firm compensation with many Financial Planners concerned about the soaring costs.

The FSCS is beginning to respond to this criticism. One of the new ‘four pillars’ of the FSCS strategy is to collaborate with regulators and industry stakeholders to help “prevent future failure and to reduce compensation costs.”

The three new FSCS appointments are:

• Baroness Nicky Morgan - Former Secretary of State for Digital, Culture, Media and Sport and chair of the House of Commons Treasury Select Committee between 2017 to 2019. She is a qualified solicitor.
• Cathryn Riley - Former Aviva group chief operating officer and group chief information officer
• Wendy Williams - HM Inspector of Constabulary and HM Inspector of Fire & Rescue Services 

Baroness Morgan and Ms Williams will join the board on 1 September with Ms Riley taking up her post on 1 February.

Marshall Bailey, chair of the FSCS, said each of the three have risen to prominence in their respective fields and were “united” with the FSCS’s aim to protect the vulnerable.

Mr Bailey said: “We find ourselves facing challenges new to us all. Our rising levy reflects too many bad outcomes from unsuitable products and advice, and we must work to prevent this. In order to tackle and overcome these issues, and continue to drive our organisation forward, we need to ensure we maintain diversity of thought on our board, because from resistance and challenge comes clarity and strength.

Caroline Rainbird, FSCS chief executive, said: “The work we do at FSCS is extremely important, not only to people who hold their money with regulated financial services providers but also in contributing to the financial stability of the UK. Each of these three new impressive individuals expressed a distinct understanding and appreciation for what we’re trying to achieve.”

Baroness Morgan said: “The FSCS plays a very important role in the UK’s financial services landscape and has risen impressively to the challenges of the past few months. I look forward to working with fellow directors and the executive team as the FSCS continues to evolve over the years ahead.”

Cathryn Riley said: “I am delighted to be joining the FSCS board. The scheme plays a vital role in helping to prevent and protect consumers from business failure and in these unprecedented times, its role is more important than ever."

Wendy Williams said: “The FSCS plays an essential role in protecting consumers and maintaining confidence in the financial services sector and I have been impressed by its commitment to that mission. I am very much looking forward to working with my colleagues on the board and the wider organisation.”