Tenet has expressed disappointment at the Financial Services Authority's proposed changes to the funding of the Financial Services Compensation Scheme.
In recent consultation paper 'CP13/1 FSCS Funding Model Review-feedback on CP12/16 and further consultation' the FSA proposed increasing the investment and intermediation sector payment threshold from £100m to £150m.
Tenet has said this is "inappropriate within the economic and regulatory environment" and raised concerns over the burden being placed on intermediary firms.
It said it had already offered alternative options to the FSA when it published its 'CP12/16 FSCS Funding Model Review' paper in July 2012 but that these were discounted by the body.
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Keith Richards, group distribution and development director, said: "It is potentially reckless to continue with a model so clearly flawed and ignoring many of the concerns and alternative solutions offered when there is a chance to remedy the problem.
"Tenet has asserted for some time that the entire regulatory and compensation funding programme is at risk of destabilising its own foundations and that the unfair burden continues to be placed on the intermediary sector.
"The intermediary market has to be clear and transparent regarding costs and it goes against the FSA's own principles to bundle the ever increasing cost of regulation and compensation in to the industry's pricing models"

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