FCA to review funding class thresholds and compensation limits

Regulator announces next steps on improving compensation framework

Hope William-Smith
clock • 2 min read

The Financial Conduct Authority (FCA) will review funding class thresholds and compensation limits following concerns it raised around the framework of protection provided through the Financial Services Compensation Scheme (FSCS).

The regulator has today (14 December) published feedback from its call for input from last December on the issue which arose through its concerns about the increasing cost of compensation liabilities. These costs, the FCA warned, could stop firms entering or wishing to stay in the market and subsequently limit the availability of some financial services. It stated: "The review aims to make sure the compensation framework continues to provide an appropriate level of consumer protection, with costs to industry distributed in a fair and sustainable way supporting innovation and growth." ...

To continue reading this article...

Join COVER for free

  • Unlimited access to real-time news, key trend analysis and industry insights.
  • Stay on top of the latest developments around health and wellbeing, diversity and inclusion and the cost of living crisis.
  • Receive breaking news stories straight to your inbox in the daily newsletter.
  • Members only access to monthly programme 'The COVER Review'
  • Be the first to hear about our CPD accredited events and awards programmes.

Join now

 

Already a Cover member?

Login

More on Regulation

Price comparison impacting consumer understanding

Price comparison impacting consumer understanding

BIBA, ABI and Fairer Finance

Cameron Roberts
clock 25 June 2026 • 2 min read
CII launches advisory board

CII launches advisory board

Professional communities

Cameron Roberts
clock 22 June 2026 • 2 min read
Starmer resigns with new leader expected by September

Starmer resigns with new leader expected by September

Burnham rumoured to have deep support within party

Jen Frost
clock 22 June 2026 • 1 min read