FSCS reform set for April 2008

The FSA will reform the Financial Services Compensation Scheme (FSCS) so the cost of compensation is ...

The FSA will reform the Financial Services Compensation Scheme (FSCS) so the cost of compensation is from the whole retail industry rather than just the sector affected. The industry will be divided into sub-classes from April 2008, each with their own cap on the amount of compensation. If this threshold is breeched, those affected can draw then upon the other sub-classes’ cash. In extreme circumstances, claimants can draw upon the resources of the wider general retail pool, which has a maximum capacity of £4.03bn per year, when the cash in the sub-classes runs out. This is designed to fu...