FSCS: No funding model will ever be perfect

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The FSCS has admitted flaws in its funding model in the wake of industry outrage over the interim levy.

FSCS chief executive Mark Neale conceded there are problems with the current Scheme, in a letter to over two thousand industry practitioners who signed a petition calling for a review of its funding. Neale says he wants advisers to play a part in the FSA's ongoing review of the funding structure of the FSCS. But in the Scheme's defence, its chief executive says even a revised funding method will not be "perfect", and he highlighted potential problems with a pre-funded alternative. He says: "No funding model will ever be perfect. However, we and the authorities share the industry's ...

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