FSCL reduces fees by 10% in response to growing membership

FSCL reduces fees by 10% in response to growing membership and efficiencies

One of the financial services industry’s largest dispute resolution schemes, Financial Service Complaints Limited (FSCL), is reducing its annual fees by 10% for the 2013/14 financial year.

Chief Executive Officer Susan Taylor said the 10% reduction had been made possible by an operational cash surplus achieved from the continued growth in FSCL’s membership and the efficient operation of the scheme.

“As a not-for profit, it is important that the fees we charge reflect our costs and that we are not making our participants pay more than they need to for our services,” said Ms Taylor.

“I guess it’s a bit of a return for the trust they’ve put in us. We’ve been very careful to use their fees wisely in providing disputes resolution services to their customers and to help them comply with the law.”

FSCL is one of four dispute resolution schemes in the financial services industry with participants including financial advisers, brokers, lenders, insurers and fund managers. All financial services providers are required by law to be members of an approved dispute resolution scheme. Financial services providers pay an annual fee, based on the category and scale of their business, to participate in a scheme. The schemes are free to consumers.

While the reduction was a one-off in response to the surplus, Ms Taylor said the Board hoped that the continued growth of the scheme would mean fee reductions were possible in future years.

FSCL is also reviewing its fee categories and case fees to ensure these remain appropriate and reflect costs.

ENDS

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