This week, the FCA published a consultation paper on proposed changes to some of the rules in its Compensation sourcebook. The paper is targeted towards authorised financial services firms and trade bodies representing both financial services firms and consumers, but may also be of interest to consumers, given the proposed changes to the compensation arrangements available to them. In summary, the FCA is proposing:
- an increase in the non-investment (general and pure protection) insurance mediation compensation limit in relation to some types of insurance from 90% to 100%
- changes to the eligibility of occupational pension schemes trustees to claim through the FSCS
- changes to make express reference to how the compensation rules apply where a successor firm is in default or to assist the FSCS in handling claims
Consultation responses should be submitted using the online form by 29 February 2016. The revised rules will be published in an FCA policy statement in Q2 2016.