Context
FSCS Chief Counsel, James Darbyshire, talks about the work that FSCS does to recover compensation costs and tackle the root causes of consumer harm.
Key points to note
“The FSCS November Outlook confirmed the levy remains unchanged for the current year at £625m, with early indications for 2023/24 revealing that a lower levy of £478m is expected.
Since 2015 FSCS has recovered more than £290m from failed firms and other third parties who have a legal responsibility. This sum helps reduce the levy on industry, placing responsibility for compensation costs back onto actors that caused harm to customers in the first place.
FSCS has pursued a number of high-profile, high value and complex recoveries actions that can take many years to resolve, often involving collaboration with agencies across international jurisdictions.
Earlier this year FSCS published its report The Balancing Act of Compensation which shares its insights into the drivers of compensation costs. It is working to strengthen its data and insight capability, with the aim of working with the FCA and other agencies to identify poor firm behaviour, pinpoint where consumer harm is taking place and support supervisory and enforcement action.
Next actions
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