Insurance brokers have raised concerns about Financial Services Authority (FSA) plans to increase their compensation threshold under the Financial Services Compensation Scheme (FSCS).
The regulator put forward the change as part of its consultation on reforming the way the FSCS is funded. Under the proposals, the threshold for the general insurance intermediation sub-class, which comprises more than 13,000 businesses, would be increased from its current level of £195m to £300m. The threshold, set annually, refers to the maximum amount that can be levied on businesses within a sub-class in any given year. Firms are categorised in sub-classes depending on the activities they undertake and the money collected is used to meet compensation claims from consumers. I...
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