The FCA has published Policy Statement 16/14: Financial Services Compensation Scheme – Changes to the Compensation sourcebook (COMP): feedback on CP15/40 and final rules (PS16/14).
In PS16/14, the FCA summarises the responses it received to its November 2015 consultation on changes to COMP where it proposed the following changes:
- an increase in the non-investment (general and pure protection) insurance mediation compensation limit from 90% to 100% for claims in relation to certain types of insurance;
- changes to the eligibility of trustees of occupational pension schemes to claim on the Financial Services Compensation Scheme (FSCS); and
- changes to make express reference to how the compensation rules apply where a successor firm is in default or to assist the FSCS in handling claims.
The FCA reports that its proposals received support from a large majority of respondents and the instrument making the new rules does not differ significantly from the consultative draft.
The changes contained in the final rules came into effect on 29 April 2016.
Firms need to read the final rules and take action to ensure that they understand them and, in particular, the changes that the FCA have made in relation to FSCS protection. Firms should also ensure that they deal with the FSCS in an open, cooperative and timely way.
View FCA policy statement on amendments to COMP, 29 April 2016