FCA is consulting on proposed changes to the rules in its Compensation Sourcebook (COMP), which governs the operation of the Financial Services Compensation Scheme (FSCS). Proposed amendments include:
- increasing the insurance mediation compensation limit from 90% to 100% for certain claims relating to pure protection contracts, professional indemnity insurance (PII) and general insurance claims arising from the death or incapacity of the policyholder owing to injury, sickness or infirmity;
- changing the eligibility of trustees of occupational pension schemes to claim on the FSCS, which will open FSCS to some new claimants but remove others from its scope;
- express references to how the rules apply where a successor firm is in default;
- creating a requirement for firms to co-operate with the FSCS; and
- removing material solely relevant to PRA.
Consultation closes on 29 February 2016. (Source: FCA Consults on Changes to COMP)