Public should pay for FSCS I went to the Money Marketing Live show at Olympia recently and before her presentation, spoke to Loretta Minghella of the Financial Services Compensation Scheme.
In her presentation, she went through the different options for a new way of funding the FSCS. The problem is that none of the options allows for a scheme funded by a public levy, like insurance premium tax, making a charge on policies or investments which could possibly be subject to compensation payout.
Thereby, the public would be paying for the protection they require, and not IFAs in particular. The cost of the FSCS has risen from 1,510 last year to 1,819 this year, which represents an indefensible rise of 20.5 per cent.
I suspect that imposing such a regime upon us may be an infringement of our human rights not a flippant remark, but a serious one.
I am not surprised that such an option, as suggested above, is not included. Heaven forbid that something politically incorrect, like the public actually paying for what they want, should be introduced. But it should be, as soon as possible.
The present situation cannot go on and it is time sensible changes were made and the public paid for the cost of their compensation options themselves.
David Barnett, Principal, DPB Independent Financial Services, Edgware, Middlesex