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The FSA has also re-appointed Sarah Brown OBE for a further one year term as a non-executive member of the FSCS Board from 1 March 2006.
FSA Chairman Callum McCarthy said:
"I am delighted that David has agreed to serve as FSCS Chairman. He will bring a valuable range of skills from his wide experience of the financial services sector over many years. I am also glad that Sarah will continue her long and valuable service to the Scheme.
"Nigel's contribution to the FSCS and financial services regulation has been immense since he was appointed founder chairman nearly six years ago. He successfully welded the predecessor schemes into a first class single compensation scheme for financial services consumers and has provided a positive lead to the Board through many subsequent challenges. I am grateful for all he has done"
David Hall said
"FSCS plays a vital role in maintaining confidence in the financial services sector. This has been clearly demonstrated since FSCS became operational (on 1 December 2001) by the huge increases in the numbers of consumers needing the protection of FSCS, particularly in relation to investments where claims have risen from 1,500 in 2002/03 to a forecast for 2005/06 of 25,000. Without FSCS these consumers would have had nowhere to turn.
“This increase in claims has created a huge challenge for the Scheme, and has impacted on all of its stakeholders. I am grateful to Nigel Hamilton for helping to steer the Scheme through what have been, at times, stormy waters for the sector. I am looking forward to using my skills and experience to continue his good work and guide FSCS smoothly through whatever lies ahead."
Outgoing FSCS Chairman Nigel Hamilton said:
“I feel privileged to have been Chairman of FSCS from its inception in March 2000, and have enjoyed immensely the challenges involved in working on behalf of the Scheme. I would like to thank all those who are, or have been, members of the FSCS Board for their support and contributions during my Chairmanship. I am sure David will benefit greatly from their continued support and contributions, as I am also sure that his experience and skills will also prove invaluable to FSCS. I wish them all well for the future.”
David Hall is Chair of a Venture Capital-backed software company. He is a member the Advisory Board of Campbell-Lutyens (a specialist advisory investment bank in private equity), and a consultant to the Board of C Hoare & Co. From 1973-2000 he was at Boston Consulting Group, where his roles included Senior Vice President serving on the firm's Worldwide Executive Committee, Chairman Worldwide Financial Services Practice Group, Chairman Global Practice Groups and Chairman Global Human Resources. David has an MA in economics from Jesus College Cambridge, and an MSc from London Business School.
Sarah Brown, OBE has been a member of the Board of the Financial Services Compensation Scheme since 2000. She is a member of the Competition Commission, a member of the Accountancy Investigation and Discipline Board and a non-executive director of South West Kent Primary Care Trust. She is a former Director of company law at the Department of Trade and Industry and former member of the Friendly Societies Commission.
Background
- The Financial Services Compensation Scheme (FSCS) is the UK’s statutory fund of last resort for customers of authorised financial services firms. The primary aim of the Scheme is to provide protection for private individuals and small businesses. FSCS can pay compensation if an authorised firm is unable, or likely to be unable, to pay claims against it, usually because it has gone out of business and has insufficient assets to meet claims, or is insolvent. The Scheme covers investments, deposits, insurance and mortgage business.
- FSCS was set up under the terms of the Financial Services and Markets Act 2000 and became the UK’s single financial services compensation scheme from 1 December 2001, when it replaced existing compensation schemes including the Deposit Protection Scheme, the Policyholders Protection Scheme, and the Investors Compensation Scheme.
- FSCS is independent from the FSA, although accountable to it, and, ultimately, to the Treasury. The conduct of the Compensation Scheme is the responsibility of its Board of Directors, appointed by the Financial Services Authority (FSA). Under the Financial Services and Markets Act 2000 (FSMA), the FSA appoints the Directors on terms which secure their independence from the FSA in the operation of the Scheme. The Chairman’s appointment is also subject to Treasury approval.
- The scheme is funded by levies on authorised financial services firms
- The FSA regulates the financial services industry and has four objectives under the Financial Services and Markets Act 2000: maintaining market confidence; promoting public understanding of the financial system; securing the appropriate degree of protection for consumers; and fighting financial crime
