'Platforms should contribute to FSCS levy' - Ken Davy

'Could give incentives to whistle-blow'

Tom Ellis
clock • 2 min read

Ken Davy has called on platforms to contribute to the Financial Services Compensation Scheme's (FSCS) levy alongside advisers, in response to the regulator's consultation on the scheme's funding system.

If both platforms and product providers contributed to the funding of the FSCS, the SimplyBiz Group chairman argued, it would give them a "significant" incentive to monitor and whistle-blow on those who are suspected of acting against consumers' interests. He suggested this could be done through a central Association of British Insurers facility. He added: "By definition, the FSCS is picking up the liabilities of failed intermediary firms - therefore those firms that fail do not contribute to the liabilities they create. "This places virtually the entire cost on the remaining intermed...

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