If the cap doesn't fit
Will the FSA's proposed new levy on brokers to pay for the Financial Services Compensation Scheme have to rise? James Salmon reports on fears that the regulator may raise the current 1.5% limit if claims pressure starts to build
In March this year, the Financial Services Authority (FSA) set out controversial plans to extend the compensation regime. Consultation paper CP04/4, which proposed how brokers would fund the Financial Services Compensation Scheme (FSCS) and the Financial Ombudsman Service (FOS), raised concern among brokers that they would have to foot hefty bills to pay for the mistakes of their competitors. The Institute of Insurance Brokers (IIB) went further, warning that brokers would be forced out of
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