Industry protest sparks further consultation on FSCS

The industry was alarmed by FSA plans outlined in CP12/16, to set up a pool within the Financial Services Compensation Scheme funded by intermediaries and investment providers that would be triggered if one or more of those classes reached their annual threshold payable to the scheme. In response, the regulator is now consulting on a revised proposal that all providers should make contributions when the pool is triggered by the failure of an intermediary - so this would include contributions from banks, insurers and home finance providers.