Early day motion tabled by primary sponsor Ann Cryer (Labour), on Tuesday, 13 January 2009, in the House of Commons. It is signed by 171 members in total.

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FINANCIAL SERVICES COMPENSATION SCHEME LEVY ON BUILDING SOCIETIES

That this House notes the disproportionate impact on building societies of the Financial Services Compensation Scheme (FSCS) levy, resulting from the failure of Bradford and Bingley plc, the Icelandic banks and London Scottish Bank; recognises that building societies' share of the levy, approximately ??200 million per annum in each of the next three years, is equivalent to about 15 per cent. of the sector's pre-tax profit for 2007-08 financial year ends; notes that building societies' share of the levy for years beyond 2011 is uncertain, but could well be higher than ??200 million per annum; acknowledges that the impact on building societies contrasts starkly with the banking sector, where the FSCS levy is typically well below five per cent. of pre-tax profits over a similar accounting period; further notes that the current allocation of the FSCS levy works to the detriment of building societies' members, their savers and borrowers; acknowledges that no building society has ever made a call on the FSCS or its predecessor schemes; and calls on the Government to introduce a more equitable scheme for funding the insurance of deposits of failed banks.

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Secondary information

Type

Early day motion

Reference

426 

Session

2008-09

Other sponsors

Chris McCafferty

David Curry

Marsha Singh

Colin Challen

Bob Russell

Subjects

Financial services

Link

View this Early day motion on www.parliament.uk