A senior FSA official has poured cold water on hopes that the regulator’s long promised review of the Financial Services Compensation Scheme will be complete in time for next year’s levy.
FSA conduct policy director Sheila Nicholl, giving evidence to the all party group on insurance and financial services yesterday, said that the review was still being held up by slow progress on revisions to the European directives which govern financial services compensation schemes.
She told the group that to make sure that there was enough time for consultation and appropriate transitional arrangements, it was unlikely the new look FSCS could be in place by April 2012, the deadline for setting the next levy. She said: “We don’t want to do a rush job on this, we want this to be sustainable.”
But she said that once the Deposit Guarantee Schemes directive was in place, work could restart. She said: “We can take the matter forward once we have certainty around the DGS.”
The DGS is due to be considered at a plenary session of the European Parliament early next month.
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