PIMFA: Treasury and FCA must review FSCS levy to protect sector and consumers

Probe into intelligence provisions also sought

Sophie King
clock • 2 min read

Adviser and investment firm trade association PIMFA has urged the government and Financial Conduct Authority (FCA) to reform the Financial Services Compensation Scheme (FSCS) levy to protect consumers and the sector.

PIMFA said that while the FSCS plays a vital role in ensuring customers can confidently save and invest, every individual who has sought compensation through the scheme has suffered a poor outcome. The trade association argued that policy should be designed to minimise the need for compensation and protect consumers before the harm occurs, rather than allowing it and then relying on the FSCS to provide a safety net. As part of the reform, PIMFA suggested that the Treasury should review the drivers of FSCS levy costs and what allows firms to transfer risk onto the FSCS, including phoen...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

Sophie King
Author spotlight

Sophie King

Professional Adviser journalist from 2018-2021

More on Advisory

Likes, stocks and shares: Influence of TikTok over younger investors grows

Likes, stocks and shares: Influence of TikTok over younger investors grows

Financial websites' influence wanes

Linus Uhlig
clock 15 July 2024 • 1 min read
Transact co-founder and former CEO Ian Taylor dies aged 58

Transact co-founder and former CEO Ian Taylor dies aged 58

Died after a short illness

Jenna Brown
clock 19 October 2022 • 1 min read
The Big Interview: TJ&P's Tim Whiting on becoming the 'One Ham Yard' of London IFAs

The Big Interview: TJ&P's Tim Whiting on becoming the 'One Ham Yard' of London IFAs

Company launched in 1995

Lauren Mason
clock 06 April 2022 • 5 min read
Trustpilot