FSCS Funding Model Review - feedback on CP12/16 and further consultation

In July 2012, we published a review of the funding arrangements of the Financial Services Compensation Scheme (FSCS). A well-funded and sustainable compensation scheme is important for financial stability and consumer confidence - and all financial services firms benefit from this. The aim of the package of proposals in CP12/16 was to establish a credible funding approach for the FSCS, one which balances the need for adequacy of funds with affordability for those contributing.

The paper includes a revised proposal on the FCA retail pool from that in CP12/16. So, to give stakeholders the opportunity to comment, we are consulting again. This is over a shortened one-month period. This is to ensure that, depending on the outcome of this revised consultation, the new funding model can be implemented from 1 April 2013. Please send us your comments on the proposal by 18 February 2013.