In December 2016, the FCA published Consultation Paper 16/42: Reviewing the funding of the Financial Services Compensation Scheme (FSCS) (CP16/42). In CP16/42, the FCA set out for discussion a range of options on changes to the funding of the FSCS and coverage of its protection.
The FCA has now published Consultation Paper 17/36: Reviewing the funding of the FSCS: feedback from CP16/42, final rules and new proposals for consultation (CP17/36). In CP17/36, the FCA is consulting on proposals to change how the FSCS is funded and the coverage it provides to consumers. In CP17/36, the FCA:
- seeks views on proposals for discussion concerning the professional indemnity insurance (PII) market and requirements for professional investment firms;
- seeks views on proposals for consultation concerning funding classes and provider contributions and to FSCS compensation limits. These include increasing the compensation limit for investment provision, investment intermediation, home finance intermediation, and debt management claims to £85,000; and
- sets out policy decisions and final rules relating to issues consulted on in CP16/42. These extend the FSCS’s protection to cover certain debt management activities and structured deposit intermediation.
The deadline for comments on CP17/36 is 30 January 2018. The final rules set out in Section 3 will mostly come into effect on 1 April 2018.
View Second FCA consultation on review of FSCS funding, 30 October 2017