Summary and Overview of the Structure Part 4: Financial Services Compensation Scheme
11.The FSCS operates under powers conferred by Part 15 of the Financial Services and Markets Act 2000. Under these provisions, the Financial Services Authority has the power to set the rules for the scheme, including rules which determine the eligibility for compensation under the scheme and the amounts of compensation payable. These powers are extensive and the majority of changes to the scheme that are being considered may be implemented by the Financial Services Authority under these existing powers. Part 4 of the Act therefore largely amends the Financial Services and Markets Act 2000 to enable changes to the scheme to be made, which fall outside the scope of the existing powers.
12.However, it also makes possible three more substantial changes, including powers for the Treasury to make detailed provision by regulations in relation to:
	the introduction of pre-funding;
	the use of the Financial Services Compensation Scheme to contribute to the costs of the use of the special resolution regime (see Part 1); and
	the use of the National Loans Fund to make loans to the Financial Services Compensation Scheme.