Financial Services Compensation Scheme needs to undergo a grassroots review

10/02/11

 The Financial Services Compensation Scheme (FSCS) needs to undergo a grassroots review and decide who it represents, according to Conservative MP Jonathan Evans, chair of the all party group for insurance and financial services.

Jonathan said the FSCS advertised itself as a government-backed consumer rights group when in fact it is supported by the financial services industry. He said it needed to recognise the support of adviser businesses and work much harder to protect their interests.

Reappraise the scheme

‘The FSCS is a great scheme and I am not suggesting the liability is moved away from its members, but there has to be a greater recognition of who pays the piper. We need to have a reappraisal of the FSCS; the way it operates and who it represents. If liability exists in the system then we need to direct the cost to where it is created,’ said Evans.

The Cardiff North MP said the cross-party group will call for evidence on the subject of the levy. ‘With the issue of [sub-class] classification, it needs to be much better. There needs to be a review of this.’

 

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