CP15 40 financial services compensation scheme changes to the compensation sourcebook
In late 2015 the FCA issued a consultation on changes to the Financial Services Compensation Scheme. In our response to the consultation we highlighted that both the current and the proposed application of the FSCS compensation regime to occupational pension schemes is highly complex – for pension scheme trustees and their legal advisers. Consequently, it is nigh on impossible to explain to pension scheme members the security of their assets in a clear and meaningful way. With consumer confidence at the heart of the compensation scheme’s focus, the scheme’s policies should be tested against whether they a) deliver the protection that the scheme seeks to provide and b) their application can be communicated simply and meaningfully.
Our consultation response can be found below.