FSA sets timeframe for FSCS funding review
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The FSA says it will consult on reforms to the Financial Services Compensation Scheme funding model in Q3 or Q4 this year.
This is the first time the FSA has committed to a timescale for the review since it was delayed in November.
Notice of the long-awaited consultation was buried within a policy development update, published by the FSA yesterday.
The update signals that a consultation paper, entitled FSCS funding model review, is expected to be published in Q3/Q4.
The consultation will be out for the usual three month period, with FSA feedback expected in the first half of next year.
The FSA was due to publish a consultation paper in November but said it was delaying the review to wait for the new regulatory structure to be finalised.
An FSA spokeswoman says: “We have obviously made the point that we are committed to carrying out the review, and we had to delay it because of the creation of the two new regulatory authorities.
“We obviously want to get on with it as soon as we can. We will aim to try and do it this year but clearly that is going to be subject to what is happening with the regulatory reform programme.”
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Readers' comments (5)
Exasperated Me | 1 Apr 2011 2:12 pm
Scrap it and start again, use insurance with a higher payout. Current scheme is too pedantic and limited.
Regulators need to be better at regulating, better supervisors, more alert to trends, tighter all round really. Alternatively we could scrap them too, can't see any benefit to society (outside their inner circle) to date, can you?
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Anonymous | 1 Apr 2011 3:59 pm
The FSA was due to publish a consultation paper in November but said it was delaying the review to wait for the new regulatory structure to be finalised.
An FSA spokeswoman says: “We have obviously made the point that we are committed to carrying out the review, and we had to delay it because of the creation of the two new regulatory authorities.
“We obviously want to get on with it as soon as we can. We will aim to try and do it this year but clearly that is going to be subject to what is happening with the regulatory reform programme.”
In other words, the new structure is more important than you lot having to fork out for other peoples mess.
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Anonymous | 1 Apr 2011 4:13 pm
It is a joke. Blind leading the blind!!
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Anonymous | 1 Apr 2011 5:19 pm
Consultation with who exactly - themselves ? They have never listened to anyone until now so why will the future be any different ?
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Julian Stevens | 1 Apr 2011 8:06 pm
The trouble is that the FSA will almost certainly refuse to publish for all to see and to debate the feedback it receives on this latest consultation, instead merely announcing the course of action on which it'll almost certainly have decided in advance and claiming to have "taken it on board". Exactly what it's taken on board and in what ways we'll never be allowed to know. This, as we know from past experience, will render the exercise nothing more than a token and hollow sham, just going through the motions, as it's already done with its "consultation" on the RDR. Oh yes, we can see which parties and which bodies made submissions but we don't and never will be allowed to know just what those submisions actually were.
From the Statutory Code of Practice For Regulators: "Regulators should create effective consultation and feedback opportunities to enable
continuing cooperative relationships with regulated entities and other interested parties."
Perhaps someone could explain in just way the FSA's standard consultation process complies with those statutoryrequirements, because I'm hanged if I can see it.
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