PIMFA: Treasury and FCA must review FSCS levy to protect sector and consumers

Should not be safety net

Sophie King
clock • 1 min read

Adviser and investment firm trade association PIMFA has urged the government and Financial Conduct Authority (FCA) to reform the Financial Services Compensation Scheme (FSCS) levy to protect consumers and the sector.

PIMFA said that while the FSCS plays a vital role in ensuring customers can confidently save and invest, every individual who has sought compensation through the scheme has suffered a poor outcome. The trade association argued that policy should be designed to minimise the need for compensation and protect consumers before the harm occurs, rather than allowing it and then relying on the FSCS to provide a safety net. As part of the reform, PIMFA suggested that the Treasury should review the drivers of FSCS levy costs and what allows firms to transfer risk onto the FSCS, including phoen...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Your profession

The state of financial vulnerability in 2024 and what 2025 holds

The state of financial vulnerability in 2024 and what 2025 holds

'Most firms are now heading in the right direction with their vulnerability processes'

Richard Farr
clock 20 December 2024 • 3 min read
Feel Good Friday: BRI Wealth Management raises money for homeless charity

Feel Good Friday: BRI Wealth Management raises money for homeless charity

Firm has raised £650 for Let’s Feed Brum

Professional Adviser
clock 20 December 2024 • 1 min read
Bank of England holds interest rates steady at 4.75% amid heightened inflation

Bank of England holds interest rates steady at 4.75% amid heightened inflation

Interest rates remain the same

Sorin Dojan
clock 19 December 2024 • 2 min read