FSCS funding review left in limbo
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The FSA has refused to commit to a timescale for consulting on reforming the Financial Services Compensation Scheme despite huge adviser anger over the latest £93m interim levy.
It was expected to publish a consultation paper in November but is now waiting for the new regulatory structure to be finalised.
Levies for 2011/12 will be published this week and the consultation process will need to complete this year for reform to affect the 2012/13 levies.
An FSA spokeswoman says: “We cannot move to consultation stage on the FSCS funding review until we have clarity about the new regulatory landscape.”
Lansons public affairs and regulatory consulting director Richard Hobbs says: “There will not be a review until after the legislation about the new regulatory structure has been agreed and I think that is some years away yet.”
SimplyBiz chairman Ken Davy has called on the FSA to introduce a product levy instead. Over 300 advisers have signed a petition at www.fscslevyactiongroup.co.uk.
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Readers' comments (2)
Anonymous | 3 Feb 2011 1:05 pm
How many IFAs have failed? What has that cost? Maybe knowing this would show the unfairness of the system
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Julian Stevens | 4 Feb 2011 11:57 am
And let us not forget the further £50m special levy that'll be dumped on the industry to fund the wind down of the FSA and its the handover to the CPMA. How could any body but the FSA need to spend that kind of money just to stick a new name on the building and change its stationery? Mind you, they probably need to set aside £30m for golden parachutes, oops, sorry, I mean redundancy payments. I wonder what Hector's payment will be for "loss of office"?
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