PIMFA urges FCA to use Barclays fines for FSCS levy

'The purest distillation of the polluter pays model'

The Financial Conduct Authority (FCA) has issued a fine of £783,800 to Barclays Bank for oversight failings in its relationship with collapsed payments firm Premier FX. PIMFA has outlined why such fines should contribute to the funding of the Financial Services Compensation Scheme (FSCS).

FCA fines are a recognition of institutions having inadvertently or otherwise introduced harm into the market, according to Simon Harrington, senior policy adviser, PIMFA. He said using the money to help pay FSCS levies would be the "purest" way to apply the 'polluter pays' model. The lifeboat fund's levy has been rising consistently for years. Many argue the system ensures the 'good guys' pick up the tab for bad actors who leave their liabilities on the rest of the industry.  Speaking at the launch of the FCA's business plan, CEO Nikhil Rathi said the regulator's aim was to "bring do...