Firms changing advice scope face FSCS exit fee

In its latest quarterly consultation paper, the regulator proposes giving the FSCS the right to charge a firm if it stops carrying out activities in one of its five ‘activity' classes, but continues to operate in one or more other classes. The exit fee would help the FSCS meet its expenses in the event of future compensation costs in that class. Currently firms can exit an activity class fee free. There are five FSCS classes: deposits, life and pensions, investment, general insurance and home finance. If an intermediary firm stops offering services in one of the classes, the FSA sa...