Trade body gets the black hole blues

1 September 2009

This hasn't gone down too well with some societies, coming on top of hav- ing to contribute disproportionately to the Financial Services Compensation Scheme.

For his part Adrian Coles, director-general of the BSA, says that the problems are similar to those in many pri- vate sector schemes.

"The deficit in our pension scheme is a tiny fraction of the payments required of mutuals in relation to the FSCS and well below the £5m figure that has been suggested," he told Chatroom. "In the past 10 years the scheme has reflected broad industry practice - neither more generous nor more parsimonious."

Council of Mortgage Lenders' staff also have an interest in the welfare of the scheme given that the CML was spawned off the back of the BSA.

So are non-building society lenders chipping in too? Not according to a CML spokesman.

"We expect to meet our responsibilities with no plans for a special levy on members," he told Chatroom.

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