MP withdraws bid to minimise FSCS costs

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A shadow minister has pulled back from an attempt to amend legislation to ensure Financial Services Compensation Scheme (FSCS) costs are minimised.

Had it been pursued and approved, the amendment to the Financial Services Bill, tabled by shadow financial secretary Chris Leslie, would have required the Prudential Regulation Authority (PRA), a successor to the FSA, to "minimise, as far as possible, the costs to the FSCS or the use of public funds to support or rescue parts of the UK financial services industry". Addressing the Financial Services Bill committee today, Leslie argued it was "not unreasonable to have minimal recourse to FSCS funds as far as possible" and pointed out that they were not "drawn from thin air" but from levies...

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