FCA "polluter pays" model

Great idea, you should pay a fee relative to your risk and previous history. I doubt our fees will go down, but it is nice to see certain areas being looked at separately. In any group of friends, there is always one that causes more chaos, and lets be honest, you try not to join in most of the time! When the payment comes for the damage, you can stay out of that too!

The policy of "polluter pays" is, and always has been, the model that the Financial Conduct Authority (FCA) has tried to use. However, as the ever-rising cost of the Financial Services Compensation Scheme (FSCS) proves, it is very often the effectively managed firms that remain in the market that end up paying the costs of the reckless few. As with all the rules that come from the FCA the issue is not the rule but the enforcement, as many times when the axe finally falls the money has all gone, therefore leaving the bill to land with the FSCS. How aggressively the FCA chooses to enforce these rules will be the key to their success or failure.