The Association of Professional Financial Advisers (Apfa) has called on the National Audit Office (NAO) to examine the Financial Services Compensation Scheme (FSCS) over its ‘blank cheque’ budget.
Under the Financial Services Act, the NAO will have the power to scrutinise the Financial Conduct Authority (FCA) and its subsidiaries, the FSCS, Financial Ombudsman Service and Money Advice Service.
Apfa policy director Chris Hannant has raised concerns with the NAO over the FSCS almost doubling its budget for compensation recovery, which includes its Keydata legal battle, for 2012/13 from £3.9 million to £7.7 million.
‘The FSCS looks like a budget out of control…the lack of clarity of where they’re going with this [legal battle] makes it look like a bill that could grow and grow,’ he said.
A spokesman from the NAO said the body was in the early stages of planning what work it would do in relation to the FCA.