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Parliamentary debate over FSCS levies kicks off today

A parliamentary debate is taking place today looking at whether building societies are having to pay too much of the cost of compensation for Bradford & Bingley and other failed banks.

The Building Societies Association has already warned that hefty levies to the Financial Services Compensation Scheme could cause many societies to fall into the red.

The Westminster Hall debate, to be introduced by Ann Cryer, Labour MP
for Keighley, follows a Parliamentary Early Day Motion that has quickly
gained the support of 159 MPs.

Adrian Coles, director-general of the BSA, says: “Building societies feel very strongly that they are footing a disproportionately high share of the bill for the failed banks.

“Societies have higher levels of retail funding than banks and are not profit maximising, so the levies hit them harder than their plc counterparts. This debate, along with the Early Day Motion Ann has tabled, shows that many MPs feel the same.”

Ann Cryer, Labour MP for Keighley, adds; “It’s hugely unfair that building societies are paying for bank failures. As mutual, member-owned organisations, any additional costs, such as the FSCS levies, ultimately hurt societies’ members – their savers and borrowers.

“My Early Day Motion has gained huge support so far and I hope this
debate persuades the Government that FSCS levies need to be modified to
better reflect the relative risk profiles of building societies and banks.”

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MP tries to ease building societies’ FSCS burden

MP Ann Cryer is introducing a parliamentary early day motion in an attempt to reduce the amount of fees building societies are forced to pay the Financial Services Compensation Scheme to fund the failure of banks.

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Guide: how to change your auto-enrolment support

As we approach the two-year milestone of auto-enrolment, employers have had the opportunity to truly assess the capabilities of their chosen support. They are also now realising that getting to the staging date was the easy part, and that support is required for almost every aspect of the day to day running of their scheme. With the three-year re-enrolment window coinciding for many with the total removal of commission and Active Member Discounts from pension-related products and services, as well as the introduction of the pension charge cap in April 2015, many employers will have no choice but to review their support options. But, what is involved in transitioning your auto-enrolment scheme away from your current support options? This guide from Johnson Fleming aims to outline some of these key areas and provide information and discussion points on what you need to consider.