The Financial Conduct Authority (FCA) has proposed that product providers stump up one-quarter (25%) of the cost of the Financial Services Compensation Scheme (FSCS) to intermediaries.
In a consultation paper published this morning, the regulator proposed product providers should be paying into the scheme from the first pound, at a 25% provider/75% intermediary allocation. Product providers currently pay into the FSCS once a particular funding class requires more than £100m to be levied from the industry. However, the new proposals would mean they pay a quarter of advisers' compensation costs. The FCA has also proposed to merge the investment and life and pensions funding classes. The regulator said 175 out of 193 responses to its original consultation supported...
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