Product levy 'fairest option', SimplyBiz's Ken Davy tells FSCS review team

Current system "a grotesque injustice"

Tom Ellis
clock • 2 min read

SimplyBiz chairman Ken Davy has called the Financial Services Compensation Scheme's (FSCS) current funding scheme "a grotesque injustice" and said a product levy is the "fairest option" to replace it.

Writing to the Financial Conduct Authority's (FCA) FSCS review team in a paper entitled Funding the Financial Services Compensation Scheme, Davy (pictured) has highlighted three aims he believes the FSCS should pursue - to be fair, to promote market stability and to have the widest possible collection base so any unfairness is spread as thinly as possible. Although some commentators suggest the regulator has already ruled out a product levy in its review, the SimplyBiz boss argued it should not be discounted. Others who consider a product levy the fairest option, include advice firm Tenet...

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