FSA/PN/029/2000
23/02/2000

The FSA today announced the appointment of the Board to run the new single Financial Services Compensation Scheme, which will provide compensation for consumers when a financial services firm is unable to meet certain claims against it. The new Board will work with the FSA to merge six existing compensation schemes into a single one stop shop, as proposed under the Financial Services and Markets Bill, currently before Parliament.

FSA Chairman Howard Davies said:

I am delighted that we have been able to appoint a Board of such high quality. The Chairman and Directors bring a valuable range of skills and experience to the new Scheme. Working with the existing schemes, we are now well placed to move ahead and establish a first class single compensation scheme for financial services consumers.

Nigel Hamilton, Chairman of the new Scheme Board said:

The task of bringing together the existing schemes to provide a cost effective and accessible compensation scheme for the UK will be challenging but well worth doing. I am looking forward to working with the Board and all those currently working at the existing schemes to reach the stated goals.

Members of the Board are:

Nigel Hamilton (Chairman), former chairman of Corporate Restructuring at Ernst & Young UK, former President of the Society of Practitioners of Insolvency, former member of the Council of The Institute of Chartered Accountants in England & Wales (ICAEW) and past Chairman of the Insolvency Practitioners Committee at ICAEW.

Michael Blair QC, General Counsel FSA (retiring March 2000), formerly Head of Legal then Deputy Chief Executive at the Securities and Investments Board, previous career in Lord Chancellors Department.

Sarah Brown, former director of company law at the Department of Trade and Industry, reporting member of the Competition Commission, member of the Friendly Societies Commission.

Kenneth Culley CBE, recently retired as chief executive of the Portman Building Society, former Chairman of the Building Societies Association, previously with Bradford & Bingley and Cheshire Building Societies.

Kit Jebens CBE, non-executive director of the Investors Compensation Scheme since 1995, chief executive of Life Assurance and Unit Trust Regulatory Organisation 1989-1994, previous career in the armed services.

Luke March, non-executive director of the Investors Compensation Scheme since 1999, Corporate Governance Director of British Telecom, previously with TSB Group and EMI. Chief executive designate of Mortgage Code Compliance Board.

Graeme MacLennan, chartered accountant with over 30 years experience in fund management, formerly member of advisory committees on Scottish financial services and committee member at the Association of Investment Trust Companies.

John Young CBE, Chairman of the Regulatory Board and independent deputy chairman of the Council at Lloyds, formerly director of policy and planning at the Stock Exchange, chief executive of the Securities and Futures Authority and then chief executive of the Securities and Investments Board; earlier career in institutional stockbroking.

Notes for editors

  1. The new Financial Services Compensation Scheme (FSCS) will bring together the Deposit Protection Scheme, the Building Society Investor Protection Scheme, the Policyholders Protection Scheme, the Friendly Societies Protection Scheme, the Investors Compensation Scheme and the Section 43 Scheme (which covers business transacted with listed money-market institutions).

  2. The FSCS will have an annual budget, including compensation payments, of over 70m and employ over 100 staff.

  3. The FSCS will be a company limited by guarantee without share capital. All Board Members are public interest non-executive Directors.
  4. All positions were publicly advertised and public interest representatives were included on the selection panels.
  5. The appointment of the Chairman is made by the FSA with the approval of the Treasury.

  6. The Board will be holding its first meeting before Easter.

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