AIFA backs 'radical' FSCS levy changes

AIFA says the alterations, which have not yet been implemented, will produce a “fairer, robust and sustainable” FSCS. The FSA says the reforms are designed to spread the cost of compensation between regulated firms “as fairly as possible and be relatively simple to administer”. Plans include introducing a new model of funding whereby only the firms in a particular sub-class (i.e. pensions) will have to stump up the initial costs for compensation emerging from that sub-class. Put another way, firms in the investments sub-class would not have to pay the first phase of compensation costs...