The FCA has published Consultation Paper 15/40: Financial Services Compensation Scheme: changes to the Compensation sourcebook (CP15/40).
In CP15/40 the FCA proposes some relatively minor changes to some of the rules in the Compensation sourcebook (COMP) that govern the operation of the Financial Services Compensation Scheme (FSCS). The FCA proposes:
- changes to the insurance mediation compensation limits, because consumers at the moment are entitled to different levels of compensation for similar types of claim depending on whether the insurance provider or intermediary fails. The FCA is proposing to remove that discrepancy;
- extending the eligibility to claim on the FSCS to the trustees of money purchase occupational pension schemes with large employers so that members of these schemes are entitled to the same protection from the FSCS as members of schemes with small employers;
- changes to make express reference to how the compensation rules apply where a successor firm is in default because the Financial Services and Markets Act 2000 now requires the FCA to make rules in relation to this; and
- changes to assist the FSCS in handling claims so that the FSCS and consumers have the benefit of these changes.
The deadline for comments on CP15/40 is 29 February 2016.
View CP15/40: Financial Services Compensation Scheme: changes to the Compensation sourcebook, 30 November 2015