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FSCS could scrap £1m payment system project

The Financial Services Compensation Scheme could scrap a £1m project begun in 2011 which the scheme hoped would allow it to deliver payments electronically.

Its annual report, published today, explains that in 2011 the FSCS “initiated a project to enlarge its capacity to pay out to depositors in failed banks and building societies in seven days by making payments directly into alternative bank accounts”.

However, it has placed the work on hold due to “challenges in delivery” and will review whether the project should continue.

The report states that the net spend on the project to date has been £1m.

Chief executive Mark Neale received pay of £290,463 for the period. It includes a basic salary of £246,891 and a £43K bonus. The FSCS also contributed £32K to Neale’s pension. 

The FSCS declined to comment on the spend, or the status of the review.  

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Comments

There are 6 comments at the moment, we would love to hear your opinion too.

  1. It’s great to use other peoples money to experiment!

  2. How can £1 million be spent on such a system? All banks provide online banking facilities, so doing it manually you just have to enter someone’s bank account number and sort code and the money’s transferred! It wouldn’t be too complicated to write the code for a simple interface with the systems of whichever bank the FSCS uses, to enable multiple inputs of the details of successful claimants.

  3. Don’t worry – just issue another emergency interim levy.

    While you’re about it I reckon you guys need a good above inflation salary/bonus increase.

  4. Julian Stevens 8th July 2014 at 6:36 pm

    So what’s Mark Neale’s £43K bonus for? Certainly not his judicious husbandry of OPM.

    And, should it decide to pay him one, on what basis will the FCA justify Clive Adamson’s bonus? Oh, I forgot ~ it doesn’t even have to try. And there’ll not be a damned thing anyone can do about it. Next thing we know, it’ll be giving him a second home allowance.

  5. Adviser watch the pennies while someone else spends the pounds

  6. Julian, surely you are not suggesting that our esteemed masters, er, I mean regulators, are planning a whitewash.

    Do not forget these are hand-picked thinkers of the highest order. That’s how Benny Hill would have put it.

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