The UK Financial Services Authority (FSA) has put its plan to overhaul the Financial Services Compensation Scheme (FSCS) on hold.

It says changes taking place elsewhere in the regulatory field “may have potential consequences for the structure and funding of the FCSC”.

The current funding model has drawn considerable fire from UK broking groups, who say they are being forced to pay excessive fees because of intermediaries who work in high-risk areas that most brokers aren’t involved in.

The broker groups have also begun lobbying MPs for support in their battle to have the fees reduced.

In a letter last week to the British Insurance Brokers’ Association, the FSA says it has delayed the FCSC overhaul because of “a number of dependencies throughout this review, including European proposals and changes to the regulatory landscape”.

“With this in mind, we believe it would not be appropriate to consult on funding arrangements at this time.”

No new date for the review has been announced.