MP withdraws bid to minimise FSCS costs

clock

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...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Regulation

FCA finfluencer enforcement action increases 174% in 2025

FCA finfluencer enforcement action increases 174% in 2025

FOI findings come as regulators ramp up online crackdown

Isabel Baxter
clock 09 February 2026 • 3 min read
TISA urges FCA to rethink targeted support fees and levies proposals

TISA urges FCA to rethink targeted support fees and levies proposals

Could ‘undermine’ the aims of targeted support

Isabel Baxter
clock 12 January 2026 • 2 min read
FCA's targeted support rules set to take effect from April 2026

FCA's targeted support rules set to take effect from April 2026

Regulator plans to open application gateway for firms in March

Isabel Baxter
clock 11 December 2025 • 5 min read