The Financial Services Compensation Scheme (FSCS) has published its Plan and Budget: 2016/17.
For the second year in succession FSCS has budgeted for management expenses to be lower than the previous year. Operating costs are falling by nearly £2 million for the second year. The indicative 2016/17 annual levy amounts to £363 million. This compares to the £319 million final levy raised in 2015/16. The increases are in the deposits and general insurance provision and intermediation sectors. The FSCS will review and confirm the final levies for each class in April.
One of FSCS’s key imperatives is modernising its services to consumers and upgrading the claims handling system is central to this. Significant steps have already been taken to speed up payments to savers in failed banks, building societies or credit unions. An online portal, where customers can submit claims, is currently being tested. FSCS believes this system will provide a more efficient service that enhances the customer experience.