The Financial Conduct Authority (FCA) has proposed product providers pay additional contributions to the Financial Services Compensation Scheme (FSCS) to ease the cost on advice firms, in a consultation published today.
The regulator said it recognised the burden of funding the FSCS does not currently fall equally on product providers and advisers. Therefore it was looking to introduce product provider contributions towards the cost of claims involving intermediary firm failures, "reflecting the wider responsibilities of product providers in the process". Product providers already contribute to the FSCS but this is only tapped after other funding streams, including those from intermediaries, are exhausted. Under the FCA's proposals providers would have to pay in from the start, alongside advisers...
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