White paper: Call to end FSCS cross-subsidisation

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Cross-subsidisation within the Financial Services Compensation Scheme (FSCS) should end, according to some respondents to the Treasury's consultation on the future of financial regulation.

In its February paper, the Treasury proposed maintaining the FSCS as a single organisation, although the Prudential Regulatory Authority and Financial Conduct Authority would be responsible for making compensation and taking fees in their respective areas. Summarising responses, the Treasury said: "A number of respondents wanted to see an end to cross-subsidy in the FSCS funding and sought clarification on whether the proposed approach to split rule-making between the two regulators implied an end to cross-subsidy between classes." Respondents also pointed out ongoing discussions in E...

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