FCA confirms FSCS product levy under consideration

Regulator sets out timing for funding review

Financial Conduct Authority (FCA) chief executive Andrew Bailey has confirmed the introduction of a product levy will be considered as part of the regulator's upcoming consultation on the funding of the Financial Services Compensation Scheme (FSCS).

In a letter to Treasury Select Committee chairman Andrew Tyrie (pictured), Bailey said one course of action under consideration was "the possibility of risk-based levies related to the products or services a firm offers, its capital reserves or complaints reported". He added: "We are aware that some sectors of the industry are keen to fund the FSCS through a product levy, and we will be considering this proposal in our consultation." There had been some speculation earlier this year the FCA had ruled out introducing a product-based risk levy because it would require a change in legislati...