Hansard

Building Societies: Finance

Volume 487: debated on Thursday 29 January 2009

Download text
Back to top Previous debate Next debate
Danny Alexander

To ask the Chancellor of the Exchequer (1) what consideration his Department has given to modifying the allocation of the Financial Services Compensation Scheme levies to reflect the differences in levels of risk associated with bank and building society business models; (252997)

(2) what recent assessment he has made of whether the Financial Services Compensation Scheme levies paid by (a) banks and (b) building societies reflect the relative risk associated with the two business models;

(3) what criteria are used to assess the level of risk in (a) banks and (b) building society business models in determining Financial Services Compensation Scheme levies for each.

Ian Pearson

The Financial Services Compensation Scheme (FSCS) levies are statutory levies. They are allocated to classes of levy payers and apportioned within those classes in accordance with rules made by the Financial Services Authority (FSA) under the Financial Services and Markets Act 2000.