Fair Fees: MPs urge immediate FSCS review

MPs have urged the government to make an immediate start on its long promised review of the Financial Services Compensation Scheme.

Alan Meale, MP for Mansfield (Labour), has sponsored an early day motion (EDM), which calls on the government “to begin immediately its promised review of the FSCS and not to countenance any further delay in fully examining the objectives of the scheme and the consequences of its actions.”

The EDM highlights the substantial increases in the FSCS levies on the general insurance intermediary sector over the past two years.

It says: “During the recent financial crisis, unlike the market failure in those sectors, the UK's insurance industries remained largely stable and did not require Government support.”

The motion has been seconded by Mark Durkan, an MP from Northern Ireland’s Social Democratic and Labour Party.

Insurance Times’ Fair Fees campaign is calling for the FSA to give brokers a fair deal by carrying out a fundamental review of fees and levies. Click here to sign the online petition.

The FSA, which is responsible for the policies governing the FSCS, has said it cannot carry out the review until an European Commission directive setting out the framework for insurance compensation schemes across the EU has been published.