A proposal enabling the FSCS to act "on behalf" of other compensation schemes anywhere in the world could lead to higher levy costs for UK financial advisers.
The FSA has today issued a consultation paper setting out proposals on using new powers granted to it by the Financial Services Act 2010, which was passed by Parliament on 8 April. It identifies a new role for FSCS (see chapter five) to act on behalf of other compensation schemes, where compensation is payable by that scheme. It has already done so, once, following the collapse of Icesave in 2008. The FSCS can decline to act on behalf of the other scheme, perhaps where it is dissatisfied it will be able to obtain the assistance it needs or where it has not received the funds n...
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