general information

 

Our overview for small firms gives background and highlights the main points in the Policy Statement.

The important sections of PS07/19 for you to read are:

  • Chapter 3 – the new funding model and where your firm will fit (especially paragraphs 3.1 to 3.14, 3.18 to 3.23 and 3.40 to 3.42).

  • Chapter 4 – how much each sub-class would be expected to pay especially the table within 'Our response' after paragpah 4.10.

  • Chapter 5 – the tariffs we will operate between 1 April 2008 and 31 March 2009 showing how we will calculate how much your firm will pay.

  • Chapter 7 - will help you estimate the amount of compensation you may be required to pay in the proposed scheme.

Currently, your firm is likely to be in FSCS contribution group A12 or A13. A12 includes (advisory brokers (excluding corporate finance advisers) holding either client money or assets. A13 includes (advisory brokers (excluding corporate finance advisers) not holding client money / assets). Under the proposals your contribution group will most likely move to: the life and pensions intermediation sub-class.

If you do business in other contribution groups (like general insurance, or investments) you will also pay a fee for those (in the general insurance of investment intermediation sub-classes), but this will be proportionate to the amount of income you receive from this business.

The group A16 (pensions review) will cease under the new model from 1 April 2008. Pensions review compensation liabilities that come up in the future will be paid from the life and pensions intermediation sub group.