Claims volume forces FSCS to exceed budget
The cost of running the Financial Services Compensation Scheme’s (FSCS) “business as usual” workload in 2010/11 was £37m, according to its Annual Report and Accounts 2010/11.
The scheme had budgeted for £32.7m but said it had exceeded this due to the higher than expected number of claims.
The FSCS has also gone £5.6m over budget in the re-haul of its IT system. Its report has shown that £18m has been spent on IT in 2010/11. The scheme said the investment would benefit other sectors by helping it to deal with a greater complexity and volatility of claims across financial services.
During 2010/11, the FSCS paid out £535m in compensation and received close to 39,500 new
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