Financial Services Compensation Scheme (FSCS) boss Mark Neale has defended the lifeboat fund's costs after being questioned on its spending by a Financial Conduct Authority (FCA) panel.
In February's FSCS perspectives blog, Neale revealed the scheme had been asked by the FCA's small business panel last month to justify the ratio of management to compensation costs. While this was a "perfectly reasonable" challenge, said Neale, it did not take into account the "full range of the FSCS's responsibilities". As an example, he said the direct costs of claims handling will account for just under £24m of the lifeboat fund's operational budget - or about one-third. He added it also spent £10m on its financial and operational resilience so it was "ready to handle a major failu...
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