The FSA has also re-appointed three other members of the FSCS Board for further terms - Sarah Brown, Graeme MacLennan and Kenneth Culley. FSA Chairman Howard Davies said: "I am delighted that Nigel and his colleagues are staying on for a further period. They and the other members of the FSCS Board bring a valuable range of skills and experience to the Scheme's work."
Nigel Hamilton, Sarah Brown, Graeme MacLennan and Kenneth Culley have been members of the FSCS Board since it was established in March 2000.
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.
Sarah Brown, reporting member of the Competition Commission, former director of company law at the Department of Trade and Industry, and former member of the Friendly Societies Commission.
Kenneth Culley CBE, former chief executive of the Portman Building Society, former Chairman of the Building Societies Association. Currently a director of several public limited companies. 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.
The reappointments of Nigel Hamilton, Sarah Brown and Graeme MacLennan are until 28 February 2006 and of Kenneth Culley until 28 February 2005.
Background
- The Financial Services Compensation Scheme (FSCS) acts as a safety net for customers of finance sector firms. The primary aim of the Scheme is to provide protection for private individuals and small businesses. The FSCS compensates consumers if an authorised firm is unable or likely to be unable to pay claims against it, usually because it has gone out of business or is insolvent. The Scheme covers investments, deposits and insurance.
- The 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 the financial services industry.
- The FSCS was created under the Financial Services and Markets Act 2000, and became operational on 1 December 2001. At that time it replaced the following compensation schemes:
- Building Societies Investor Protection Scheme
- Deposit Protection Scheme
- Friendly Societies Protection Scheme
- Investors Compensation Scheme
- PIA Indemnity Scheme
- Policyholders Protection Scheme
- Section 43 Scheme
and the arrangement between the Association of British Insurers and the Investors Compensation Scheme Ltd for paying pension review compensation to widows, widowers and dependents of deceased persons. The assets and liabilities of the pre-existing Schemes were transferred to the FSCS. The FSCS also assumed responsibility for any outstanding claims that had been made to those schemes before 1 December 2001.
- 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; the appropriate degree of protection of consumers; and fighting financial crime.
- The FSA aims to maintain efficient, orderly and clean financial markets and help retail consumers achieve a fair deal.
