IA Comment on FSCS Outlook

Responding to the FSCS’s Outlook today, Pauline Hawkes-Bunyan – Director, Business: Risk, Culture & Resilience at the Investment Association – said:

“While we welcome the FSCS’s commitment to constructive dialogue on the appropriateness of the compensation funding model, we’re disappointed to see that the levy is forecast to continue rising at extraordinary levels.

“Urgent reform is needed to ensure the FSCS is proportionate on the sectors that contribute rather than being accepted as a cost of doing business in the UK.

“It’s vital that the scheme is fit and fair for the future – one that protects consumers, retains their trust and does not deter international businesses from locating themselves in the UK - and we’ll continue to engage with the FCA and FSCS on this important matter.”

For further information, please contact:

Katie Martin, Head of Communications: [email protected]

T: +44 (0)20 7269 4655

Navdeep Sidhu, Corporate Affairs Manager: [email protected]

IA press office: [email protected]

T: 020 7269 4696

About the Investment Association (IA):

  • The IA champions UK investment management, supporting British savers, investors and businesses. Our 270 members manage £9.4 trillion of assets and the investment management industry supports 114,000 jobs across the UK.
  • Our mission is to make investment better. Better for clients, so they achieve their financial goals. Better for companies, so they get the capital they need to grow. And better for the economy, so everyone prospers.
  • Our purpose is to ensure investment managers are in the best possible position to:
    • Build people’s resilience to financial adversity
    • Help people achieve their financial aspirations
    • Enable people to maintain a decent standard of living as they grow older
    • Contribute to economic growth through the efficient allocation of capital.
  • The money our members manage is in a wide variety of investment vehicles including authorised investment funds, pension funds and stocks and shares ISAs.
  • The UK is the second largest investment management centre in the world, after the US and manages over a third (37%) of all assets managed in Europe.