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Tyrie pushes FCA on FSCS funding review

Andrew Tyrie Tory conf 2013.jpg

Treasury committee chair Andrew Tyrie has reprimanded FCA chief executive Andrew Bailey for failing to give an update on the Financial Services Compensation Scheme funding review.

In a letter dated 9 September, Tyrie asks what the scope of the review is and when it will be completed.

He says: “Last October the committee took evidence from Tracey McDermott, the acting chief executive of the FCA regarding the FSCS. In a letter she said that the FCA would be undertaking a review of the FSCS, and would keep the committee updated when the review commences.”

Tyrie adds: “As I have not heard from her (or you) about this, I am writing to confirm that this work has begun. I would also be grateful to know its scope, and when it will be completed.”

The review was recommended in the Financial Advice Market Review. MPs plan to hear evidence on FAMR and the FSCS funding review in the autumn.

Industry meetings on the funding review have been ongoing since May. The FCA ruled out a product-based levy at an early meeting because it would require a change in legislation.

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Comments

There are 2 comments at the moment, we would love to hear your opinion too.

  1. I fear Mr Tyrie, the FCA have no appetite to review the FSCS, or more importantly alter it !

    You see, they already know the findings (as do we) and I suspect so do you !

    It is grossly unfair, one sided and will continue to benefit the bad corrupt and feckless whilst the good continue to dig deeper in to their pockets

    The only way to combat this is do away with PI, have a central pot (FSCS) who pay out……… this will cut out expensive PI, going to companies who wont pay out, restrictions, exclusions, at every corner, complicated forms.
    We need confidence for companies, advisers, and most importantly the consumer that on a upheld complaint, fund closure, firm closure, mass miss selling ………

    You may say we have this already, and yes we do, but we pay twice and it will forever be increasing.

    Personally I would prefer guarantees, than having to go through a process with the odds stacked against you, then to find you have to pay out to a 3rd party

    I believe we may well pay more in the short term, but in the long run we will reap the rewards, after all, how big is the fighting fund or funds that insurance companies sit on……. they are massive

    Why cant ours and our clients money work for us ?

  2. And what will Tyrie do if the FCA’s response isn’t what he wants it to be?

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