Government must do more to promote FSCS
Almost 80 per cent of MPs believe financial service firms should do more to inform customers about the Financial Services Compensation Scheme, a survey has found.
A Com Res poll of 154 MPs held between February and March, revealed that 77 per cent believed that financial services firms should have to display information about the FSCS prominently in branch or at the point of sale.
The survey, which was weighted to reflect the political make-up of the house of commons, was published in the wake of increased scrutiny of financial redress by Westminster politicians, with Alun Cairns MP - the chairman of an all-party group overseeing a proposed £100m FSA compensation scheme for victims of the Arch Cru scandal - stating the plans were “too complex”.
The poll also found 75 per cent of MPs agreed that the compensation scheme was vital to ensure public confidence in financial services firms, against 4 per cent, who disagreed or strongly disagreed with the statement.
Elsewhere, 78 per cent agreed that improving awareness of the FSCS would increase consumer confidence and trust in financial services, in addition to contributing to increased financial stability, while 81 per cent agreed there was a lack of awareness of the protection offered by the industry funded scheme.