The FSA is reforming the Financial Services Compensation Scheme so that compensation costs fall on t...
The FSA is reforming the Financial Services Compensation Scheme so that compensation costs fall on the whole industry rather than just the affected sector. Under the changes, the industry will be divided into sub-classes, each with their own cap on potential compensation payments. If this threshold is breached, those affected can draw on the other sub-classes. In extreme circumstances, claimants can draw on resources of the general retail pool when the cash in sub-classes runs out, which has a maximum capacity of £4.03bn per year. This means investment management groups could be calle...
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