Financial Services Compensation Scheme chairman David Hall has called for the Government and regulators to include the FSCS in its contingency planning to enable the service to meet demands placed on it.
Giving evidence to the Treasury select committee last week, Hall indicated that previous planning for the failure of financial institutions had not involved the scheme.
He said: “If we can somehow create an environment whereby it is normal for us to be involved in stress-testing different institutions’ capabilities, in order to plan for future payouts, that is another key thing we need to build into the structure.”
When asked by TSC chairman Andrew Tyrie about the possibility of separate compensation schemes for the Consumer Protection and Markets Authority and the Prudential Regulation Authority, FSCS chief executive Mark Neals said the service needs to remain in one piece.
He said: “My confidence that we can do all the jobs that we have to do and provide a good responsive service to consumers across the range of services does depend on keeping the organisation together.”