FSCS chief backs 'fair' risk-weighted levies

The chief executive of the Financial Services Compensation Scheme (FSCS) is "sympathetic" to calculating the scheme's levy based on the risk posed by specific businesses.

Speaking at a meeting of building society leaders in London, Mark Neale said he would back a risk-weighted approach to calculating the levy as long as the determination of a business's risk was calculated in a fair way. He said: "I am personally sympathetic to risk-weighting FSCS levies. But we must have a transparent, objective and fair way of recognising and assessing risk. "So if that is want you want, please come forward with ideas about how to do this." However, he also warned funding compensation costs is a "zero sum game". It is possible to carve up the costs differently but...