Proposed changes to the Financial Services Compensation Scheme (FSCS), opening up eligibility to more parties, are likely to lead to increased compensation costs and higher levies.
Among a raft of new rules proposed today by the Financial Services Authority (FSA) is a simplification of eligibility criteria, extending it to: directors and managers of the firm in default close relatives of these directors and managers auditors of the firm in default or of any body corporate in the same group as the firm or any actuary appointed under SUP 4 in the Supervision sourcebook by a friendly society or insurance undertaking persons who have contributed to the default persons holding 5% or more of the capital of the firm The FSCS said: "Given this...
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