Time for clear thinking on FSCS funding
An opportunity exists for IFAs to do away with the FSCS’s discredited and unfair funding model.
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