View more on these topics

FCA pushes FSCS consultation paper back

FCA interior 620x430

The FCA is set to release its consultation paper on Financial Services Compensation Scheme funding a month later than anticipated, Money Marketing understands.

Those close to the review say they expected the consultation to be launched in November, but have now been told to expect the proposals near Christmas. A policy statement with final proposals is likely to be released in mid-2017 with any changes coming into effect for the 2018/19 fee year.

One source close to the review said the FCA had taken more time to deliver its consultation as more alternatives for reform were suggested by stakeholders, particularly about how professional indemnity insurance and the FSCS work together.

The source says: “There’s going to be a wide consideration of all options when we do have a consultation…It’s encouraging now that they seem to have listened since [the start of the review] and become more open to the broader issues that need to be considered.”

A separate review of PI cover is due to begin in early 2017 but another source did not expect a recently-touted suggestion that PI bills could be combined with FSCS bills in a centralised fund would feature in it.

The source said: “If PI was stronger and covered more at outset, then this should reduce down the need for FSCS, but I would be surprised if it was done away with in its entirety.”

Some industry stakeholders remain optimistic about the outcome of the FSCS funding review, however. Money Marketing understands from sources close to the discussions that the review could see 20 to 40 per cent reductions in advisers’ FSCS bills.

An FCA spokeswoman said the regulator could not comment on the consultation until it had been released.



FCA looks at merging FSCS and PI bills

The FCA is discussing combining Financial Services Compensation Scheme protection with professional indemnity insurance as part of the FSCS funding review. Personal Finance Society chief executive Keith Richards says one of the ideas being talked about is a potential centralised fund that advisers would pay in to instead of paying FSCS bills and PI insurance […]


FCA sets out thinking on FSCS funding review

The FCA is considering a bigger role for providers and the introduction of a product levy as part of its review of how the Financial Services Compensation Scheme is funded. In a letter to Treasury committee chairman Andrew Tyrie, published yesterday, FCA chief executive Andrew Bailey says work on the FSCS funding review is “well […]


Calls for providers to fund FSCS as review continues

Simplybiz Group chairman Ken Davy has said product providers should be the primary funding source for the Financial Services Compensation Scheme in the event a product levy is definitely ruled out. In a paper sent to the FCA’s FSCS review team, Davy outlines why he thinks the current FSCS funding model is flawed. The Financial Advice Market Review […]

Europe: Domestic backdrop & China impact

By Rob Burnett, Head of European Equities In recent weeks equities have been buffeted by two shocks occurring at the same time: China’s devaluation of the renminbi and the prospect of the US Federal Reserve (Fed) raising interest rates. The market is not comfortable with the Fed raising rates at the same time that China […]


News and expert analysis straight to your inbox

Sign up


There are 2 comments at the moment, we would love to hear your opinion too.

  1. Elsewhere we read that Burns Anderson’s PI insurers rejected claims in respect of recommendations made by Michael Royde to invest in overseas property schemes on the (alleged) grounds that the risks hadn’t been properly disclosed. Should the FSCS become, effectively, an industry-wide PI insurer, how will it cope with this sort of scenario?

  2. Hmmm, four weeks before pension freedoms industry given the final rules by the regulator and expected to implement. Regulator takes years to even look at FSCS and then gives years to their friends to implement. Funny old world.

    This highlights how the system really works.

Leave a comment


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