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Public should pay levy

The Financial Services Compensation Scheme has announced that compensation for customers of Berry, Birch & Noble has been capped at 48,000 and that they are one of 80 firms declared in default in the FSCS’s latest declaration, Customers (they mean clients) of each firm will be eligible for up to 48,000 compensation,

FSCS chief executive Loretta Minghella said: “This is good news for consumers who have nowhere else to turn if the firm they dealt with cannot help. The existence of a fund of last resort for consumers helps to maintain confidence in the sector and encourages people to do business with authorised financial services firms.”

When will she and others realise that advisers have to write “open” cheques each year because of the dubious practices of those less principled in our profession and this is becoming financially untenable, It is also quite unfair that product providers do not contribute their fair share.

In any event, why can’t the public pay a simple and no doubt very small levy on each and every policy and investment sold to provide the protection costs to fund the FSCS? In this way, the cost would be borne by those who will benefit from the system – the public themselves,

Will Minghella please adopt this format with urgency or explain why this is not a more equitable way forward than the present absurdly unfairly and disproportionate levy.

David Barnett

Principal

DPB Independent Financial Services

Edgware, Middlesex

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