Advisers renew calls for 'polluter pays' FSCS funding

FCA proposals 'do not go far enough'

Carmen Reichman
clock • 2 min read

The vast majority of advisers think the funding review of the Financial Services Compensation Scheme (FSCS) will not go far enough and have asked for industry fines to be used to pay for compensation.

According to research from industry platform Panacea Adviser, about four-fifths of advisers thought the regulator should do more to improve the FSCS funding model. Just 2% surveyed thought the current review would go far enough while 17% were undecided about the outcome. The FSCS pays compensation to consumers in claims against firms already in liquidation. These payouts are largely funded by advisers but, in its review of the funding model currently underway, the regulator has proposed to make providers pay for part of the cost. It shied away, however, from considering a levy based o...

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