Time for clear thinking on FSCS funding
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In addition it is important to recognise that the precedent for a product levy is well established having existed successfully for some 30 years in the general insurance sector until it was absorbed by the FSA in 2004. Nor would a product levy conflict with the desire which exists in some quarters for the pre-funding of the FSCS. Indeed the natural longevity of most insurance providers and investment houses make such a possibility much more feasible without creating any inherent unfairness between differing generations of savers and policyholders.
I believe that to continue with the present discredited system with its inbuilt unfairness and systemic failings would be a disgrace. It is essential the FSA grasps the opportunity presented by their review of the FSCS to introduce a product levy. Now is the time for the voice of reason and common sense to be heard in this context and I fully support the recent online petition which has also called for an urgent review by the FSA of the fairness of the FSCS. I look forward to continuing to campaign both personally and with others for a soundly based and fair FSCS funding model.
Ken Davy is chairman of Simplybiz