§ Matthew GreenTo ask the Chancellor of the Exchequer how the Financial Services Compensation Scheme is funded. [123892]
§ Mr. BoatengThe Financial Services Compensation Scheme is funded by levies on the financial services industry. Levies are normally raised once every financial year to cover the projected costs of the Scheme.
§ Matthew GreenTo ask the Chancellor of the Exchequer how much has been(a) recovered from the liquidators of financial advisers and (b) paid to investors under the Financial Services Compensation Scheme in each year since 1997. [123895]
§ Mr. BoatengWith effect from 1 December 2001 the Financial Services Compensation Scheme replaced several separate Compensation Schemes.
The FSCS confirm that for the period 1 April 1997 to 31 March 2003 the amount recovered by the compensation scheme(s) from third parties (not only liquidators or the firms themselves, but any third party) was in total approximately 12.8 million. The breakdown of the figure is as follows:
£ million 1997–98 0.399 1998–99 0.609 1999–2000 0.373 2000–01 0.873 2001–02 2.097 2002–03 8.488 The FSCS also tell me that for the period 1 April 1997 to 31 March 2003 the amount of compensation paid to investors was approximately £246 million. The breakdown of the figure is as follows:
£ million 1997–98 10.8 1998–99 16.7 1999–2000 51.6 2000–01 58.5 2001–02 45.4 2002–03 63.0