The Financial Services Compensation Scheme (FSCS) has published its plan and budget for 2017/18.
In his foreword the FSCS chair, Lawrence Churchill, states that this year sees two innovations that the FSCS board hopes will promote transparency and accountability to the firms that meet the FSCS’ costs through the levy. The first is embodied in the plan and budget. The FSCS is setting out its proposed budget for next year on the basis of activity rather than input. The FSCS states that this will make it much easier for firms to see what it is proposing to spend to achieve the different outcomes for which the FSCS is responsible.
The second innovation will become apparent when the FSCS reports on 2016/17 in the summer. Up to now, the FSCS have produced an Annual Report and Accounts which provide both audited information about its accrued income and expenses and information about cash flows in each of the FSCS classes. These cash flows determine the levies the FSCS charge each year. In the future the FSCS will publish a separate document covering these cash flows, so that levy payers can trace through the year how assumptions have changed from the levies set in April to the FSCS’ mid-year report in Outlook, to the end-year position.
In the CEO’s overview, Mark Neale states that the FSCS’ focus in 2017/18 will be on promoting and developing its digital service. Customers have been able to make and track claims online since December 2016. The FSCS want to extend this service to claimant representatives, such as claims management companies in 2017/18 and aim to receive the vast majority of claims applications online by March 2019.
View FSCS plan and budget 2017/18, 19 January 2018