April start for new FSCS funding model

The new scheme divides the industry into five broad classes (life and pensions; investments; general insurance; deposits; and home finance) with two sub-classes each apart from deposits. It introduces a 'widening circle' of funding which means compensation costs emerging from a particular sub-class of firms are met by that sub-class alone up to its annual threshold, after which higher costs are shared more widely. This last level of funding is only expected to be triggered in the event of a significant default, or series of defaults. Overall financial capacity under the reformed arra...