Inancial Services Compensation Scheme Has New Chief
The Financial Services Authority (FSA) has appointed Lawrence Churchill as the new Chairman of the Board of the Financial Services Compensation Scheme (FSCS) for three years, taking up his appointment on 1 April 2012, and succeeding David Hall CBE.
The FSCS is the UK’s statutory compensation scheme for customers of authorised financial services firms. This means that the FSCS can pay compensation if a firm is unable, or likely to be unable, to pay claims against it.
The FSCS is an independent body, set up under the Financial Services and Markets Act 2000 (FSMA), and funded by a levy on authorised financial services firms. The FSCS does not charge individual consumers for using its service.
“I am delighted Lawrence has agreed to serve as FSCS Chairman. He will bring an invaluable set of skills and knowledge from his varied experience in the financial services sector over many years, which will only benefit the FSCS,” Lord Turner, the FSA’s chairman, said.
“David has made a significant contribution to the FSCS and financial services since he was appointed chairman over six years ago. He played an important role in navigating the FSCS through many great challenges and unchartered territory, including the banking failures of 2008. David has always provided a positive lead to the Board through many subsequent challenges. We wish him well for the future.”
Lawrence Churchill added: “A huge increase in claims and compensation paid out in more recent years has created significant challenges for the FSCS, and has impacted on all of its stakeholders. I am grateful to David Hall for his influence and contribution in steering the organisation to the levels of efficiency and responsiveness we see today.
“The FSCS will continue to play a vital role in providing confidence in the financial services sector this year and onwards. It is vital that consumers continue to be informed and made fully aware of the levels of protection that the FSCS provides, especially during times of economic uncertainty.”
Outgoing FSCS Chairman David Hall, said: “I feel privileged to have been Chairman of the FSCS since March 2006 and there have been many challenges in that time. I would like to thank all those who have been involved in taking the FSCS forward, including the Board for their support and efforts during my Chairmanship.
“I am confident Lawrence will benefit greatly from the ever growing support and contributions of everyone, as I am also sure that his experience and skills will prove invaluable to the FSCS.”
Mr Churchill is currently the Chairman of the National Employment Savings Trust and is the former Chief Executive of UK, Irish & International Life at Zurich Financial. He has also held senior roles in Unum, NatWest life and investments and Hambro Life/Allied Dunbar Assurance. He was appointed a Commander of the British Empire in the New Year’s Honours list in 2010 in recognition of his Public Service.