AIFA lobbies Chancellor on using fines to pre-fund FSCS

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The Association of Independent Financial Advisers (AIFA) has set out plans to the Treasury on how regulatory fines could be used to transition the Financial Services Compensation Scheme (FSCS) to a pre-funded system.

Earlier this week, IFAonline reported on how the trade body was urging the chancellor to rethink plans to redirect fines to the Exchequer, in the wake of the Barclays Libor scandal. Although he accepted it may be unpalatable for fines to be used to offset fees for other firms, the current system, AIFA policy director Chris Hannant suggested they could be used to fund the FSCS. In a letter from AIFA chairman Lord Deben to the George Osborne yesterday, the organisation set out more details on this, and how it could tie in with European proposals for pre-funded schemes. "The fines cou...

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