APFA unhappy with proposed FSCS budget hike

Published on

Financial Services Compensation Scheme

In its response to the FSA’s consultation on the Financial Services Compensation Scheme’s management expenses levy limit for 2013/14, the Association of Professional Financial Advisers (APFA) has questioned the rising cost of regulation.

Clare Griffiths, senior policy adviser at APFA, said: “We struggle to see how the FSCS can justify budgeting for an increase of nearly 13% in its management expenses in 2013/14, when it expects claims decisions to fall by nearly 40% at the same time.

“We are also concerned about the disproportionate amounts being spent on the change programme and ‘exceptional’ costs. More than half of next year’s budget is allocated to these expense items.

“The FSA needs to hold FSCS to account on this. The costs of regulation increase each year, and more needs to be done to challenge regulatory bodies like FSCS about their expenditure levels. The FSA needs to be rigorous in its analysis of the FSCS budget.”

Latest POLL

COMMENT ON MORTGAGE SOUP

We want to hear from you!
Leave a comment and get the conversation started.
You need to register to post, so please login or sign up below.

Latest articles

Square 1 Media announces May Mortgage Market Debate

Square 1 Media is to hold its next Mortgage Market Debate on Wednesday, 21 May,...

Coventry BS maintains status as one of the best workplaces

Coventry Building Society has been named one of Great Place to Work's UK’s Best...

Atom bank breaks Near Prime record

Atom bank has reported another record-breaking month for Near Prime activity. Over the course of...

Berkeley Alexander appoints new BDM

General insurance provider Berkeley Alexander has announced the appointment of Grant Robinson as a...

Other news

Lenders must step up on high LTV products

Things are on the up for borrowers with a smaller deposit. The financial information...

Square 1 Media announces May Mortgage Market Debate

Square 1 Media is to hold its next Mortgage Market Debate on Wednesday, 21 May,...

Coventry BS maintains status as one of the best workplaces

Coventry Building Society has been named one of Great Place to Work's UK’s Best...