Regulator seeks unbiased funding for compensation

The FSA has suggested four possible funding structures for the Financial Services Compensation Schem...

The FSA has suggested four possible funding structures for the Financial Services Compensation Scheme (FSCS), aimed at making its finances more robust. The FSCS is funded by 12 contribution groups, organised into five sub-schemes linked to the FSA's own fee blocks. However, the regulator has raised concerns about the fairness of how levies are allocated across firms and the levels some groups have to pay. It has worked with trade associations and studied data provided by economic consultant Oxera to produce the four options, which split the scheme into five classes - life and pensions, se...