Following the announcement by the Chancellor George Osborne in his Mansion House speech in June that the FSA would be scrapped, the Government has launched a consultation on regulatory reform. A paper today clarifies that the Financial Services Compensation Scheme, FSCS will come under the control of the new Consumer Protection and Markets Authority, CPMA. Under this change it is expected that all compensation schemes will continue to be administered by the FSCS.
The FSCS is there to protect consumers who may have a claim against a regulated firm who is unable or unlikely to be able to make a payment for compensation made against it. In many cases firms have ceased trading. There has been criticism over the length of time taken in processing claims, this follows the increase in mis-sold payment protection insurances (PPI), two thirds of all payments made during the year are to these and investment claimants. In it’s recently published annual report (Fscs.org.uk/uploaded_files/Publications/Annual_Reports/annual_report_2009-10.pdf) it promises to speed up claims.
The maximum amount payable under the FSCS for those who have been mis-sold mortgages was recently increased to £50.000. Industry experts have welcomed the new proposals saying "greater focus and accountability will benefit the consumer".
Mis-sold Mortgage Claims > Mortgage News
FSCS changes to be made under new proposals.
Mon, 26 Jul 2010
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