An FSA-led review of the Financial Services Compensation Scheme (FSCS) will include an assessment of the composition of classes and sub-classes as well as the annual thresholds each class can be asked to pay, the regulator has confirmed.
It is understood the FSA has already begun what it calls a "comprehensive" evaluation of the scheme and will consult on its proposals next year. The allocation of levies among different types of firms, the limits that apply to different types of FSCS levy and the method of apportionment of levies to individual firms will also be examined. An FSA spokesperson says: "We last undertook a comprehensive review of the FSCS funding model in 2006/7. There have been significant changes since then as a result of the financial crisis and potential changes to UK and European legislation." The ...
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