A review into how the industry pays for the FSCS has been delayed due to recent changes to the regulatory landscape, the FSA has confirmed.
The regulator began looking into the FSCS's funding at the end of last year, amid industry anger at increased levies after the large scale defaults in 2008 and 2009.
The composition of the levy classes, how much each class should pay annually, and whether the levy allocation should reflect the degree of risk posed by individual firms, are all going to be reviewed.
In a letter to the British Insurance Brokers Association (BIBA), the FSA said changes to the regulatory landscape in the UK and Europe mean it would "not be appropriate" to look at the funding arrangements now.
No new date for the review has been given, but it is likely to be early next year.
The FSA letter states: "There have been a number of dependencies throughout this review, including European proposals and changes to the regulatory landscape with the creation of the Prudential Regulatory Authority and the Consumers Protection and Markets Authority, which may have potential consequences for the structure and funding of the FSCS.
"With this in mind, we believe it would not be appropriate to consult on funding arrangements at this time, as we originally planned. We will keep you updated about a new consultation date."
Steve White, BIBA head of compliance and training, says once the FSA's consultation paper is issued, the organisation will provide members with a template response document plus a template letter to go to MPs.
"This will be the most appropriate time and way to get our key messages on this issue to the key influencers.
"The unfairness of the current FSCS funding model continues to be BIBA's number one lobbying issue."
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