The Financial Services Compensation Scheme has appointed the FSA's head of enforcement law Loretta Minghella as its new chief executive.
Minghella was once a defence lawyer for white-collar crime cases and now runs the FSA department responsible for legislative change covering enforcement and strategic legal matters in addition to policy issues arising from overseas regulators.
She takes over at the FSCS from acting chief executive Ron Devlin at a time of dramatic rises in compensation bills for IFAs. Industry commentators predict that next year's bills will be even higher for IFAs, with the future of the providers' cross-subsidy in jeopardy and more liabilities from closed IFA firms expected to land on the scheme.
Minghella says: “The FSCS plays a vital role in protecting consumers who have nowhere to else to turn and in helping maintain confidence in our financial markets. “The scheme is under increasing pressure from rising claims particularly in relation to investment business. It is also preparing for its new responsibilities for potential claims against mortgage and general insurance intermediaries.
“The scheme needs to ensure that consumers receive compensation in a reasonable timescale and that costs are kept as low as possible for firms that fund the scheme.”
Minghella previously worked as a white-collar crime defence lawyer, then moved to the DTI investigations division. She then joined the legal division of SIB before setting up its enforcement law and policy support function before the move to the FSA.