FSCS confirms 36 month compensation cost calculation

Carmen Reichman
clock

The Financial Services Compensation Scheme (FSCS) has confirmed that it will calculate compensation fees on a three-year basis in the future, following a consultation process that received some "detailed" but "positive" feedback.

The FSCS will calculate levies on a three-year forward looking basis and levy one third of that amount each year from 2014/15. The industry resonse to the proposal was postive, it said, with firms welcoming the aim of increased certainty and less volatility that the new system tries to achieve. The scheme also confirmed that management costs are not included in the calculation of compensation costs, instead they will be continue to be "collected to meet costs incurred or expected to be incurred on an annual basis". However, the FSCS did not bow to calls for a fixed definition of wh...

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 bids to save firms £100m a year with transaction reporting changes

FCA bids to save firms £100m a year with transaction reporting changes

Aiming to reduce costs and improve quality of data

Isabel Baxter
clock 21 November 2025 • 1 min read
Government to reconsider rejection of Waspi compensation

Government to reconsider rejection of Waspi compensation

Rethink does not guarantee that financial redress will be awarded

Jonathan Stapleton
clock 12 November 2025 • 3 min read
FCA seeks experienced professional opinion on its decision-making

FCA seeks experienced professional opinion on its decision-making

Regulator opens applications for positions on three statutory panels

Isabel Baxter
clock 10 November 2025 • 1 min read