View more on these topics

Europe rebuffs calls for rise in compensation level

The European parliament has refused to back a recommendation to increase the Investor Compensation Scheme’s maximum guaranteed level of compensation to €100,000.

In April, the economic and monetary affairs committee published draft amendments calling for the maximum guarantee to be doubled from the European Commission’s proposal of €50,000.

In a plenary session in Strasbourg this week, the move was the only committee proposal rejected by the parliament.

In the UK the Financial Services Compensation Scheme has a £50,000 limit on investments, which would have to be significantly increased if the €100,000 Euro limit was introduced.

The European Council must now come forward with its position before it, the parliament and the commission decide a final text. The parliament accepted the recommendation for the scheme to be pre-funded. It said national schemes should be fully funded within five years, half the time proposed by the commission. It said “bad advice” should be included as grounds for a claim, which the commission did not recommend.

Conservative MEP for London Syed Kamall says: “We started off looking at just fraud and maladministration. Covering misselling in the ICS has come from MEPs in other countries looking at the UK model. I do think we need to tackle misselling but I do not think this directive is the right place to do it.”

The parliament’s rapporteur for the directive, Swedish Liberal MEP Olle Schmidt says:“I believe in the right to choose but there must also be the right to protection.”

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There is one comment at the moment, we would love to hear your opinion too.

  1. Lawyers Ombudsman £30,000,
    Europe rejects Increase to 100,000 Euros.
    FSA/FOS increases to £150k for small businesses they wish to put out of business.
    Why are the inmates running the asylum and being allowed to get away with it?

Leave a comment

Close

Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm

Email: customerservices@moneymarketing.com