David Blackman on some rare good news from the FSCS for brokers
At last, some good news on the regulation front. Today, the Financial Services Compensation Scheme has published its final levy for the upcoming year.
This shows that brokers will be asked to fork out a collective £69.5m to the financial services lifeboat in 2011/12- a lot less than the £93.5m originally indicated in the scheme’s draft budget back in February.
This figure is still higher than the £60m levy for the current financial year, but represents a much lower increase than the 50% plus rise brokers feared.
FSCS chief executive Mark Neale has said that the scheme is “mindful” of the pressure that financial services firms are under- an acknowledgment perhaps that the message is finally getting through about the pain caused by last year’s levy.
The FSCS is also no doubt feeling the political heat. Within the last 24 hours, MPs have put down an early day motion calling on the FSA to carry out an immediate review of the FSCS. Neale received the same message in person during his grilling last week by the all party insurance and financial services group, which is holding an inquiry into the FSCS.
But just remember, we were here first. Insurance Times’ ‘Fair Fees’ campaign has been banging the brokers’ drum about the unjust increase in the levy for the past year.
Today’s news is welcome, but it is still an increase. There is still a lot to be done to reform the FSCS so that we never see such a sharp increase mooted again.
But away from the regulatory jungle, the big market news has been the long awaited news of the restructuring of AXAs commercial lines divisionunder new broom Amanda Blanc. Blanc has a tough task to restore the French owned behemoth’s reputation in the UK general insurance, but she has certainly made a bold start.
David Blackman, deputy editor.
Email: david.blackman@insurancetimes.co.uk
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