The Financial Services Compensation Scheme (FSCS) is to start “shadowing” the Policyholders' Protection Board (PPB) in preparation for its takeover on November 30.

The PPB will be one of seven government compensation schemes absorbed by the FSCS.

FSCS chief executive Suzanne McCarthy said the scheme was currently in negotiation with the PPB.

“We're hoping to agree a shadowing agreement to allow an orderly transition of knowledge to us,” she said.

“We're not waiting until the 30th – we've got a lot of initiatives to make sure we're ready to take on the mantle of insurance regulator.

“We have an insurance industry committee, chaired by John Young, to look at the trends and expectations of the industry, which has the role of keeping the board informed.”

Young was previously deputy chairman of the Council at Lloyd's.

McCarthy said the FSCS had also established regular meetings with Association of British Insurers director general Mary Francis.

She said the FSCS was prepared for the heavy demands currently placed on the PPB following the collapse of Independent Insurance. “The way we want to work is sensitive to all stakeholders, from those who have claims to the industry levy-payers,” she said.