The following Financial Services guidance note Produced in partnership with Honor Levy, non-practising solicitor provides comprehensive and up to date legal information covering:
The powers of the Financial Services Compensation Scheme (FSCS) to raise funds from the regulated community are contained in Chapter 6 of the FEES sourcebook of the Financial Conduct Authority (FCA) Handbook and in specific chapters of the Prudential Regulation Authority (PRA) Depositor Protection, Dormant Account Scheme and Policyholder Protection rules. This Practice Note provides an overview of the main provisions.
Sections 213 and 224 of the Financial Services and Markets Act 2000 (FSMA 2000) give the power to the regulators (ie the FCA and the PRA) to make rules enabling the FSCS to levy fees on authorised persons to meet its expenses. These rules are found in FEES 6 in the FCA Handbook and in Depositor Protection 33, Dormant Account Scheme 16 and Policyholder Protection 21 in the PRA Rulebook. This reflects the fact that the PRA is the relevant authority for rules relating to claims concerning deposits, dormant accounts and insurance provision, whereas the FCA is responsible for all other types of financial activity covered by the FSCS.
In March 2013, the Financial Services Authority (FSA) (the FCA’s predecessor) published its policy statement PS 13/04 on the FSCS Funding Model Review in which it introduced an FSA/FCA retail pool (see below).
Further consultation papers were subsequently published by the FCA, which proposed some changes to the way
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