Building Societies Association
Early Day Motion on building societies and FSCS levy gathers pace in Parliament
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Date:
28 Jan 2009
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An Early Day Motion (EDM) noting the disproportionate impact on building societies of the Financial Services Compensation Scheme (FSCS) levy resulting from the failure of banks, has attracted over 100 signatures from MPs. The motion, tabled by Ann Cryer, Labour MP for Keighley, has quickly gained cross party support since it was tabled on 13 January.
The EDM comes as the building society sector expresses its anger over its share of the levy, with many Chief Executives writing to their local MP and encouraging their own members to do the same.
Commenting on the EDM, Adrian Coles, BSA Director-General, said: “To see so many Members of Parliament acknowledge the disproportionate impact on building societies of the FSCS levy is really encouraging. Building societies consider that they are being asked to bear a disproportionately high share of this levy. It angers us that institutions that behaved prudently in the housing market upswing are now being forced to pay for those who acted much less prudently. As mutual, member-owned organisations any additional costs applied to societies ultimately works to the detriment of their members – their savers and borrowers. Accordingly, we consider there to be a strong case for the allocation of the FSCS levies to be modified to meet these concerns.”
To view the progress of EDM number 426, Financial Services Compensation Scheme Levy on Building Societies, click here .
