FSCS financing under renewed attack

The Financial Services Authority (FSA) is facing criticism for its decision to retain the existing limits on payments to consumers by the Financial Services Compensation Scheme (FSCS) and the Financial Ombudsman Service (FOS).

The Financial Services Consumer Panel said there were strong arguments for the removal of limits on compensation payments altogether.

John Howard, the chairman of the panel, said that consumers who lose out through mis-selling or the collapse of an FSA-regulated firm sho