PIMFA: Treasury and FCA must review FSCS levy to protect sector and consumers

Probe into intelligence provisions also sought

Adviser and investment firm trade association PIMFA has urged the government and Financial Conduct Authority (FCA) to reform the Financial Services Compensation Scheme (FSCS) levy to protect consumers and the sector.

PIMFA said that while the FSCS plays a vital role in ensuring customers can confidently save and invest, every individual who has sought compensation through the scheme has suffered a poor outcome. The trade association argued that policy should be designed to minimise the need for compensation and protect consumers before the harm occurs, rather than allowing it and then relying on the FSCS to provide a safety net. As part of the reform, PIMFA suggested that the Treasury should review the drivers of FSCS levy costs and what allows firms to transfer risk onto the FSCS, including phoen...