The Financial Conduct Authority (FCA) will review funding class thresholds and compensation limits following concerns it raised around the framework of protection provided through the Financial Services Compensation Scheme (FSCS).
The regulator has today (14 December) published feedback from its call for input from last December on the issue which arose through its concerns about the increasing cost of compensation liabilities. These costs, the FCA warned, could stop firms entering or wishing to stay in the market and subsequently limit the availability of some financial services. It stated: "The review aims to make sure the compensation framework continues to provide an appropriate level of consumer protection, with costs to industry distributed in a fair and sustainable way supporting innovation and growth." ...
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