APFA: New FSCS compensation scheme 'distorted'

APFA said it supported the scheme's proposed new way of calculating costs in principle but queried its approach to 'exceptional factors'. Under the proposals, which the FSCS published in a policy update yesterday, the scheme would base its fees calculation on the average of the proceeding three years' expected compensation costs - or one year's, whichever is the greater. The scheme argued this way of calculating fees would allow it to "reduce the volatility of annual levies, reduce the likelihood of interim levies, and give the industry greater certainty." However, APFA said its ap...