Everything the Financial Services Compensation Scheme does is “subject to a value for money challenge”, FSCS chief executive Mark Neale says.
In his latest blog post, Neale says the organisation’s commitment to value for money “is more than a pious expression of good intent”.
He says the FSCS achieves value for money by outsourcing the majority of claims, which allows it to deal efficiently with claims volatility.
Neale says the FSCS also ensures it puts only “proportionate” efforts into contingency planning and pursuing recoveries.
He says: “We ensure that the effort and resources we put into planning for each eventuality are proportionate. We do not lavish resources on contingencies that are very remote or which, though more likely to arise, will have limited impact on consumers and financial stability.
“Equally, we only pursue recoveries where it is practical and cost-effective to do so.”
Neale adds: “The other safeguard is that we keep a firm grip on FSCS’s core costs.
“Value for money matters to us. And our commitment to it is more than a pious expression of good intent.
“Not everything we do is readily measurable. But everything we do is subject to a value for money challenge.”