BSA comments on the FSA’s further consultation on the funding of the FSCS
Commenting on the publication today by the FSA of its further consultation on the funding of the Financial Services Compensation scheme
Adrian Coles, Director General of the Building Societies Association said:
"It is very disappointing to see the FSA proposing a U-turn on a key part of its original proposals. This new consultation includes a provision that building societies, together with banks and insurers, be required to contribute to compensation costs arising from future failures of insurance and investment intermediaries. Such a cross-subsidy of firms with which they have no connection or affinity is unwarranted and we oppose it. Introduction of such a measure could cost the mutual sector many millions of pounds, money that would no longer be available for the benefit of members."
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Contact:
Hilary McVitty
Tel: 020 7520 5926
Email: hilary.mcvitty@bsa.org.uk
Notes for Editors:
1. The Building Societies Association (BSA) represents mutual lenders and deposit takers in the UK including all 47 UK building societies. Mutual lenders and deposit takers have total assets of over £375 billion and, together with their subsidiaries, hold residential mortgages of £245 billion, 20% of the total outstanding in the UK. They hold more than £250 billion of retail deposits, accounting for 22% of all such deposits in the UK. Mutual deposit takers account for 31% of cash ISA balances. They employ approximately 50,000 full and part-time staff and operate through approximately 2,000 branches.
2. Photographs of Adrian Coles are available from the BSA press office, or from the Association's website at www.bsa.org.uk or Headlinemoney www.headlinemoney.co.uk
3. Follow the BSA on Twitter @BSABuildingSocs
4. The FSA consultation can be viewed here.
Katie Wise
Policy and External Affairs Officer
Building Societies Association
6th Floor, York House
23 Kingsway
London
WC2B 6UJ
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