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Poland makes financial compensation scheme reform a European priority

Poland has made it a priority of the European Council to finalise its position on the Investor Compensation Scheme directive by the end of the country’s presidency on December 31.

The final directive will shape any changes to the UK’s Financial Services Compensation Scheme. The FSA is waiting for the directive to be completed before it resumes its review of the FSCS.

The European Parliament voted through its amendments to the commission’s original proposal in July. The council must now decide where it stands before all three bodies enter discussions to hammer out the final rules. The directive currently proposes that the maximum guaranteed compensation should be set at €50,000 or £43,000. The Financial Services Compensation Scheme has a £50,000 limit for investments.

The parliament’s amendments call for all national schemes to be prefunded within five years of the directive passing. The parliament also wants “bad advice” to be included as grounds for a claim, which the commission did not recommend.

A European Council spokesman says: “The Polish presidency is looking to obtain a result under its presidency, which ends on December 31. That could take the form of a council agreement but would then require negotiations with the parliament.”

A working group of technicians within the council is due to meet on September 26 to discuss the directive.

Derbyshire Booth Financial Planning managing director Greg Heath says: “This is good news. We need certainty about how compensation schemes must look in future so the FSCS review can progress.”

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  1. I thought bad advice was covered by the FOS. Who will decide what constitutes bad advice – another bunch of quangocrats ?

    Look at all those over-paid people in various European committees, all sat around on their fat arses, coming up with more rules to beat us with.

    When Poland starts dictating FS regulation in the UK, I thank God I’m getting out.

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