The FSCS is the UK's statutory compensation scheme of last resort for customers of authorised financial institutions. This Consultation Paper proposes changes to some of the rules in our Compensation sourcebook that govern the operation of the FSCS. The paper also discusses insurance specific issues including:
1) Incentives for policyholders when a life insurer has (or may) failed.
2) Compliance costs to firms and the FSCS.
3) Impact on policyholders who receive benefits payable in the form of income.
4) Speed of FSCS claims handling.
5) Automatic assignment of policyholders' rights to the FSCS - life and general insurance.