FSCS may be pre-funded; FOS role under scrutiny

clock •

The Treasury today proposes reforming the way the Financial Services Compensation Scheme (FSCS) is funded and announces a wide-ranging review of the role of the Financial Ombudsman Service (FOS) in a white paper suggesting a raft of dramatic changes to the banking sector.

In Reforming Financial Markets, it says a pre-funding arrangement that would see the industry contribute to the costs of the FSCS before a major failure occurs, rather than pay for it via raised levies after the event, may be better suited given the market events of the last 18 months. It says the arrangement would only affect the deposit-taking class, would not be introduced until 2012, and pledged initial levies would "not be set at a level which would compromise financial stability". Meanwhile, it says this is also an "appropriate" time to review the "governance and accountability"...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Your profession

Advisers urged to remain 'alert' as LPA financial misconduct complaints rise

Advisers urged to remain 'alert' as LPA financial misconduct complaints rise

Alleged LPA financial misconduct complaints rose to almost 12,000

Sophia Panayi
clock 12 October 2026 • 3 min read
News editor's view: Taxing questions for advisers

News editor's view: Taxing questions for advisers

The news editor's Friday Night Takeaway from 9 October

Isabel Baxter
clock 09 October 2026 • 2 min read
Why the new chancellor must rebalance growth and consumer protection

Why the new chancellor must rebalance growth and consumer protection

'Healy should re-empower the FCA to unleash the full potential of Consumer Duty'

James Daley
clock 09 October 2026 • 3 min read