FCA updates rules on Financial Services Compensation

The FCA today published the police statement “PS16/14: Financial Services Compensation Scheme – Changes to the Compensation sourcebook: feedback on CP15/40 and final rules”.  In this Policy Statement the FCA reports on the main issues arising from Consultation Paper 15/40: Financial Services Compensation Scheme:changes to the Compensation sourcebook, and publish the final rules.

This Policy Statement will be of interest to:

  • authorised financial services firms
  • trade bodies representing authorised financial services firms
  • bodies representing consumers
  • persons that have assumed responsibility for the liabilities of an authorised financial services firm, or will do so in the future

The new rules will be of interest to retail consumers and consumer groups because they change the compensation arrangements available to consumers under the FSCS. Of particular interest will be the:

  • increase in compensation in relation to some types of non-investment (general and pure protection) insurance mediation claims
  • changes regarding trustees of occupational pension schemes who are eligible to claim compensation

The changes contained in the rules that form part of this Policy Statement will come into effect on 29 April 2016.

The FCA statement and related information are available here.

Lavanya Rathnam

Lavanya Rathnam is an experienced technology, finance, and compliance writer. She combines her keen understanding of regulatory frameworks and industry best practices with exemplary writing skills to communicate complex concepts of Governance, Risk, and Compliance (GRC) in clear and accessible language. Lavanya specializes in creating informative and engaging content that educates and empowers readers to make informed decisions. She also works with different companies in the Web 3.0, blockchain, fintech, and EV industries to assess their products’ compliance with evolving regulations and standards.

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