Regulatory Alerts2013-03-22
FSCS funding model review – feedback on CP13/1
The Financial Services Authority published final rules establishing a revised FCA retail pool for the Financial Services Compensation Scheme, requiring FCA-regulated deposit takers, insurers, and home finance providers to contribute when intermediation class thresholds are breached. This policy decision follows industry feedback and maintains separate funding approaches for PRA and FCA classes to ensure the scheme can meet compensation costs exceeding individual class affordability limits. The regulator rejected proposals to spread costs over time or rely on commercial borrowing, affirming that mutual support among regulated firms is necessary to maintain consumer confidence and financial stability.
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