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Apfa fails to act on FSCS costs after calling for NAO audit

Apfa has failed to submit a request to the National Audit Office to review the costs of the Financial Services Compensation Scheme, despite publicly calling for it almost two months ago.

In February, Apfa published a press release calling on the NAO to conduct a value for money audit on the FSCS’s strategic projects.

The trade body said the increasing cost of the FSCS had reached a point where an independent audit was necessary. It said it was particularly concerned about the “unacceptable” amount being spent on an online claims processing system.

But Money Marketing can reveal Apfa has not yet contacted the NAO with the request.

The NAO scrutinises public spending by Government departments and bodies, and publishes around 60 value for money reports per year.

It takes suggestions for value for money reports and plans its own programme each year.

A spokeswoman for the NAO says it has not received a request for an FSCS audit from Apfa.

The FSCS’s plan and budget for 2015/16, published in January, revealed the cost of its online claims system has spiralled by two thirds from £12.2m to £20.4m.

The FSCS’s overall levy will rise from £276m in 2014/15 to £287m in 2015/16. In March it announced a £20m interim levy for life and pensions intermediaries, on top of a £57m annual levy.

Thameside Financial Planning director Tom Kean says: “The funding for the FSCS is a thorn in the industry’s side. Given Apfa’s public pronouncements about the cost of regulation, I would expect them to do more on the industry’s behalf. This makes me question their motivation.”

Apfa director general Chris Hannant says: “The FCA is consulting on all regulatory fees for 2015/16 until 18 May and we will consider all fees by that date. We have had upheaval in our policy team with two staff members leaving in February, and will submit the request to the NAO shortly.”

Update: Apfa says it has now submitted a request to the NAO.



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There are 10 comments at the moment, we would love to hear your opinion too.

  1. All APFA ever does is make public pronouncements (aspirational flatulence) and convene meetings to talk about things. Action doesn’t seem to be part of its agenda. And the NAO’s oversight of the FCA is nothing but a hollow, token sham.

  2. E L Wisty (an only twin) 16th April 2015 at 11:44 am

    I understand that “A complete history of APFA regulatory successes” has been nominated for the ‘Shortest Book in the World’ award.

  3. our industry seems to have too many ‘trade bodies’ to have a voice with any regulator…especially if the most vocal is completely ineffective.

  4. A close second to the Book of Italian War Heroes.

  5. We don’t have a single trade body worthy of mention.

    APFA is so conciliatory and fluffy that it makes Mary Poppins appear draconian.

    When dealing with a regulator which refuses to listen to reasonable input and rides roughshod over the wishes of both advisers and the TSC, the only response is to declare war.

    APFA’s only declaration is in respect of its own empty-mouthed flatulence.

  6. @ Dave

    Our regulator is not accountable to any-one, let alone any little or big annoying trade bodies,

    Short of a military coup, I fear nothing will make then sit up and listen !

  7. E L Wisty (an only twin) 16th April 2015 at 1:04 pm

    @ Julian

    I’m surprised the Moderator allowed your comment – gloriously un-PC!

  8. Despite the rhetoric of Hannant, Liversidge et al, the reality is that APFA has failed in every area of significance.

    It has succeeded in providing worthwhile employment for seven or eight people, but that’s it.

    Its value as an adviser supporting body is negligible. In fact there is notion supported amongst the posting classes that it actually fails us so significantly as to be a liability when it comes to effecting change.

    Please go.

  9. E L Wisty (an only twin) 16th April 2015 at 5:03 pm

    The writing was on the wall, when it removed ‘independent’ from its title.

  10. @ EL Wisty

    “The writing was on the wall, when it removed ‘independent’ from its title.”


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