We are consulting on transitional provisions to ensure that the life and pensions intermediation class will continue to benefit from support from the retail pool over the next few months, consistent with the FSCS’s public messaging on this.
Following consultation, including with the FSCS, we recently made changes to the FSCS funding arrangements as part of a broader review of FSCS funding. One of the changes was to align the FSCS compensation levy year with the financial year. We have since become aware that a practical implication of this change is a different allocation of costs to the life and pensions intermediation class which was not intended. We think it is reasonable to now consult on transitional provisions which delay the effect of this change meaning in effect that we maintain the status quo. The provisions will ensure that the life and pensions intermediation class will continue to benefit from support from the retail pool over the next few months, consistent with the FSCS’s public messaging on this.
In this paper we propose to:
We are also consulting on minor clarifications to the new rule about levy paying arrangements for firms who pay fees on account.
Who this applies to
This consultation paper will be of interest to all firms who are current or potential contributors to FSCS funding.
Please send us your comments by 5 February 2018:
You can also:
We plan to publish our feedback on your comments and final rules in a Handbook Notice in February 2018.