Watchdog 'unconvinced' by product levy for FSCS funding

In its consultation paper on FSCS funding today, the regulator proposed sticking to the model of firms paying levies calculated on the tariff base applicable to the relevant sub-class. Product levy proponents have suggested it could create a more transparent system, making consumers aware of the costs of compensation, and shield firms from unpredictable levies. However, the FSA said it would be difficult to objectively judge how to risk-adjust the rate of levies accordingly for each product, while they would also be considered to be pre-funding, something that can only be introduced b...