View more on these topics

Broker FSCS bills could drop under new funding shake-up

Money

Mortgage brokers could pay less in FSCS fees under new FCA plans to make lenders pay more when intermediaries go bust.

Under the current scheme, brokers pick up the bill for claims made against other brokers in default.

The bill can be large. Mortgage brokers paid an extra £10.5m in the 2017/18 year after just one company went into default.

The FCA laid out the plans in a consultation paper on the future of the FSCS, published today.

The consultation paper asks for market views on “requiring product providers to contribute 25 per cent of the compensation costs falling to the intermediation classes”.

The regulator also has plans hike home finance intermediation compensation limit from £50,000 to £85,000.

This would be to “reflect changes to the options available to consumers when they retire”, according to the FCA.

The regulator also wants to change the FSCS funding system so that brokers handling pure protection insurance move from the life and pensions group to the general insurance class.

This would mean they no longer pay extra levies to handle claims against self-invested personal pensions.

However, they would contribute to any claims for payment protection insurance.

PPI claims are expected to spike in the coming years due to the FCA bringing in hard deadline for claims.

Recommended

Payment-Fine-Currency-Money-700.jpg

FSCS copycat scammers strike again

The Financial Services Compensation Scheme is the latest agency to warn that scammers are trying to use its name to trick consumers into handing over money. In a note published on its website, the lifeboat fund warns people to be wary of “fake emails from fraudsters claiming to represent FSCS.” The FSCS writes: “Do not […]

FSCS-Piggy-Bank-Alt-500x320.jpg

FSCS looks to increase consumer awareness

New branding will help enhance consumer awareness of the Financial Services Compensation Scheme. An industry-wide agreement will see the enhanced promotion of the ‘FSCS Protected’ on banking websites and apps. Banks and building societies are already required to display the FSCS stickers in branches and on posters and leaflets. But a new agreement will see […]

Money-Cash-Coins-GBP-Pounds-UK-700x450.jpg

FSCS pays out £750,000 in mortgage claims against single firm

The Financial Services Compensation Scheme has paid out more than £750,000 to date following 12 successful mortgage claims against IFA firm Stuart Black Limited. The claims came from Stuart Black advising customers to remortgage to free up cash to invest in Harlequin, an unregulated property scheme. Harlequin marketed and built overseas luxury property developments. Some […]

Money
1

FSCS sees ‘notable’ rise in claims against brokers in 2016/17

The Financial Services Compensation Scheme saw a “notable” increase in compensation claims against mortgage brokers in the 2016/17 year following a landmark court case. The 2013 Court of Appeal case, between Charmaine Emptage and the FSCS, established that consumers could claim against regulated mortgage advisers giving unregulated property investment advice. As a result, the lifeboat […]

Greg Broomer 2

Survey looks at the challenges facing businesses post auto-enrolment

A survey conducted by Johnson Fleming at the Pension & Benefits Show 2014 highlighted the key challenges faced within organisations post auto-enrolment. The results showed that communicating the changes and the value of them to staff, and receiving timely data from the payroll provider proved to still be the most challenging aspects of managing an auto-enrolment scheme.

Newsletter

News and expert analysis straight to your inbox

Sign up
Comments