The FCA issued their consultation document CP16/42 regarding the review of how FSCS is funded by the various components of the financial services sector. Details of this consultation paper CP16/42 can be obtained from here.
The proposed changes, as outlined in the consultation document, will have implications for the insurance sector and follow a review, which was carried out in March 2013 when FSA were the regulators.
This consultation has two real impacts:
- The first is the way in which the regulators calculates and proportions funding from the market.
- The second relates to the actual coverage the fund provides and the potential impacts that it will have on the market itself.
The consultation ended on the 31st March and the MGAA response is available on the link below.