The new Financial Services Compensation Scheme was launched last week, bringing six compensation schemes under one roof.
The FSCS brings together the Investors' Compensation Scheme, the Deposit Protection Scheme for banks, the Policyholder Protection Scheme for life offices, the Building Societies' Protection scheme, Friendly Societies Protection Scheme and Section 43 Protection Scheme for stockbrokers. The six bodies, like the financial services regulatory bodies, will be merged into one at N2.
The FSA consulted on the proposed changes last year and says it is able to introduce the FSCS ahead of schedule because it has taken less time than expected to finalise the results from the exercise.
A further consultation will take place on funding of the scheme before Easter.
The FSCS has been set up as a company limited by guarantee and will effectively operate as a holding company until N2. It is independent in its day-to-day decision-making but ultimately accountable to the FSA.
Members of the ICS board were replaced by the new FSCS board on January 31.
FSA director of consumer relations Christine Farnish says: “This marks an important step in the process of bringing together existing financial services compensation schemes to protect consumers when firms go bust.
“The FSCS management team can now bring existing schemes under one roof and work towards offering consumers a one-stop shop for claims.”