IMA, AIFA and APCIMS reject FSCS changes

Industry trade bodies have criticised proposed changes to the Financial Services Compensation Scheme (FSCS) sourcebook, with the IMA calling for a "complete overhaul" of the scheme.

The Association of Independent Financial Advisers (AIFA) warned the proposed changes could encourage false claims and threaten further increased costs for the industry. It has called for a delay to the rule changes to align them with the wider review of FSCS funding, which is expected to be published shortly. Earlier this year, the FSA proposed the FSCS be permitted to compensate investors prior to investigating to confirm they have lost money. It suggested the FSCS could make payouts to investors without assessing their eligibility where it was not ‘proportionate' to assess the ca...