Tag Archives: FSCS

FCA publishes Handbook updates including IDD instrument

The FCA has published Handbook Notice No. 55, setting out: the Financial Services Compensation Scheme (Funding Review) Instrument 2018, the Handbook Administration (Data Protection) Instrument 2018, the Insurance Distribution Directive Instrument 2018, and the Supervision Manual (Reporting No 8) Instrument 2018. The Data Protection Instrument sets out administrative changes arising from the implementation of GDPR, […]

FCA publishes new FSCS funding rules

Following its consultation in 2017, the FCA has now published its final rules on reformed FSCS funding.  These rules will take effect from April 2019. Additionally the FCA has opened a consultation on draft rules relating to Professional Indemnity Insurance requirements for Personal Investment Firms, CP 18/11.  The proposed rules will require that policies do […]

FCA consults on FSCS funding

Following its December 2016 consultation for views on how FSCS funding could be reformed, FCA has published a further consultation paper seeking to ensure FSCS continues to provide the right protections, works effectively and is funded fairly. Proposals under consultation include: Merging the Life and Pensions and Investment Intermediation funding classes; Requiring product providers to […]

FSCS launches “FSCS protected” badge

FSCS has announced a new agreement with banks and building societies, supported by industry associations, that will lead to institutions using the “FSCS protected” badge consistently across website, mobile banking apps and customer information sheets.  The banks and building societies have 18 months to make necessary changes.

PRA consults on fees and levies for insurers and designated investment firms

PRA has published a consultation paper on model transaction fees, fees and FSCS levies for insurers and fees for designated investment firms. The consultation paper is relevant to  insurers and designated investment firms, as well as firms which have, or intend to apply in the future for, Solvency 2 or CRR models. The consultation paper sets […]

FSCS annual report and accounts 2016/17: compensation costs total £375m

FSCS has published its annual report and accounts and annual report and class statements 2016/17, which set out its vision and strategy. The publications detail that FSCS paid out for over 37,000 claims 2016/17 in the sum of £375m. The £375m included: £52m for policyholders affected by the failures of Enterprise Insurance Company PLC and […]

FSCS confirms £363m levy for 2017/18

FSCS has announced its levy for 2017/18. The £363m is less than forecast in the FSCS’ 2017/18 Plan and Budget in January, but more than the 2016/17 levy. The 2017/18 levy includes: no change to the £100m levy on life and pensions advisers; £5m more to be paid general insurance intermediaries than FSCS forecast in January; and […]

FCA makes new rules

FCA made several changes to its rulebook at its Board Meeting on 30 March. Key changes include: changes to fees relating to the FOS and periodic fees for exchanges and benchmark administrators; changes to the FSCS management expenses levy limit; implementing the policy proposal for PSR fees; allowing FCA to set fees relating to MiFID […]

FSCS publishes plan and budget

FSCS has published its plan and budget for 2017/18. FSCS estimates that firms are likely to have to pay a total levy bill of £378 million to cover its costs. Points of interest include that FSCS: intends to raise supplementary levies relating to general insurance provision (£63 million), life and pensions intermediation (£36 million) and […]

PRA confirms increase in FSCS cover

PRA has issued a policy statement confirming it will increase the deposit protection limit provided by the FSCS to £85,000 from 30 January 2017. This is an increase from £75,000 to reflect currency fluctuations that occurred following the UK’s referendum vote to leave the EU. Firms must make all changes to customer-facing materials required to implement the […]

PRA and FCA consult on FSCS levy limit

FCA and PRA have issued a joint consultation paper on the management expenses levy limit (MELL) for the FSCS for 2017/18. The MELL provides the FSCS with adequate resources to process compensation claims resulting from the failure of financial services firms. The MELL proposed is £75.54 million, which is the maximum amount the FSCS can […]

FCA consults on FSCS changes

FCA is consulting on changes to FSCS rules and funding. It is considering introducing mandatory terms to make PII more effective for firms that FCA requires to hold it, and also exploring introducing new levy categories and updating consumer coverage limits in light of pensions freedoms, some aspects of fund management, debt management and structured […]

PRA consults on deposit protection increase

PRA is consulting on increasing the deposit protection limit back to £85,000. The limit was decreased from £85,000 to £75,000 in July 2015 because of the Deposit Guarantee Schemes Directive’s requirements on non-euro currencies and would normally be subject to a five year review period. However, limits must be adjusted within that period if there […]