View more on these topics

MPs to debate building societies’ FSCS levies

MPs are set to debate the levies imposed on building societies in Parliament tomorrow.

The Westminster Hall debate, to be introduced by Ann Cryer MP
for Keighley, follows a Parliamentary Early Day Motion that gained the support of 159 MPs.

Building societies have reported profits slashed by as much as 200 per cent as a result of having to pay increased FSCS levies as deposit-taking institutions in the wake of the failures of Bradford & Bingley, London Scottish Bank and the failed Icelandic banks.

The Building Societies Association is backing the debate. It says building societies are paying too much of the cost of compensation for failed banks.

BSA director-general Adrian Coles says: “Building societies feel very strongly that they are footing a disproportionately high share of the bill for the failed banks. Societies have higher levels of retail funding than banks and are not profit maximising, so the levies hit them harder than their PLC counterparts. This debate, along with the Early Day Motion Ann has tabled, shows that many MPs feel the same.”

Cryer says: “It’s hugely unfair that building societies are paying for bank failures. As mutual, member-owned organisations, any additional costs, such as the FSCS levies, ultimately hurt societies’ members – their savers and borrowers.

“My Early Day Motion has gained huge support so far and I hope this debate persuades the Government that FSCS levies need to be modified to better reflect the relative risk profiles of building societies and banks.”


Adviser Fund Index

As macro-economic news seems to move from bad to worse, investors’ confidence in the value of their investments has been tested, resulting in widespread sell-offs. The shortening of investment horizons that this implies is a cause for concern for AFI panellists.


Case study: administration — managing group life schemes

Our client leads the global market in high-tech electronics manufacturing and digital media. The trustees of the company’s final salary pension scheme insure death-in-service lump sum and dependants’ pension death benefits for active employees, as well as dependants’ pension benefits for deferred members (those who have left service).


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm