We are the voice of insurance and long-term savings | Contact us

ABI: No justification for the blurring of responsibilities in FSCS funding consultation

Responding to the consultation launched today by The FCA on the future funding of the Financial Services Compensation Scheme (FSCS), Hugh Savill, Director of Regulation at the Association of British Insurers (ABI), said:

“The Financial Services Compensation Scheme is a vital safety net in case of the failure of a financial services firm and insurers pay a significant contribution towards it. It is worth noting that no UK insurer has gone bust for many years.

“We are very concerned at the proposal for insurers to bear additional costs to guard against failures by intermediaries such as brokers and advice firms – something insurers have very little direct influence over. We see no justification for the blurring of responsibilities in this way. We will be engaging fully in the consultation, with a focus on challenging the rationale behind this idea."

Last updated 22/12/2016