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FSCS chief: 87.5% of industry rates our service favourably

Mark Neale looks to improve communication after overall satisfaction high but cost concerns remain

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FSCS chief executive Mark Neale

87.5 per cent of industry stakeholders ratee The Financial Services Compensation Scheme favourably, according to the lifeboat fund’s latest survey.

In a blog on the FSCS’ website, chief executive Mark Neale says that industry stakeholders, mainly the trade bodies, were “predominantly satisfied” with the FSCS’ work overall, with only 12.5 per cent rating the service unfavourably.

However, he noted that when ranked on cost effectiveness and pursuing recoveries, the FSCS scored lower.

Neale said the figures gave the service ideas on how its communication could be improved.

He noted that while complex litigation and negotiations over recoveries meant the FSCS could not always give a running commentary on the prospects for returning investor’s money, the FSCS was committed to publishing a report at the end of proceedings to give an idea of overall collections after costs.

Neale noted the example of Keydata, where this figure was £100m.

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Neale added that while some respondents had expressed concern that the FSCS may sometimes “over-step the mark” in commenting on public policy issues, he said that the FSCS could help highlight trends it is seeing such as poor Sipp advice leading to investments in esoteric assets.

Neale wrote: “FSCS must retain the confidence of our stakeholders.  This latest survey indicates that we have now.

“But it also confirms that, to retain your confidence, we need to demonstrate our cost-effectiveness, continue to give priority to timely and effective communication and ensure that FSCS sticks to our task of delivering a compensation service which supports public confidence in the industry.

“We have an obligation to our levy payers to operate efficiently and to communicate in a timely and clear way about the levies we raise.  The volatility and unpredictability of our workload, allied to a pay-as-you-go funding regime, mean that firms need as much warning as possible if rising compensation costs look likely to trigger a supplementary levy.”

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