It may not come soon enough for the victims of collapsed stockbroker Pacific Continental but the Financial Services Authority (FSA) is bringing forward its planned review of the Financial Services Compensation Scheme (FSCS).

The watchdog had initially planned to review the scheme – which pays a maximum £48,000 for investment-related claims – in 2009. But last week it said it will now carry out the review next year. The process will begin with a ‘discussion’ paper, possibly in January, setting out proposals and then, if the feedback is for an increase in limits, a consultation paper will follow.

The FSCS limits have come into stark contrast following the collapse of Northern Rock (NRK) which prompted chancellor Alistair Darling to shore up confidence by ordering an immediate increase in the maximum compensation for banking customers.

But the work of the FSCS, which is funded by industry and pays out when firms can’t settle their claims, has shot to the top of private investors’ radar too following the collapse of Pacific Continental. It’s thought there are 8,000 private investors with claims each of £30,000, and if the liquidation of Pacific’s assets don’t cover these claims they’ll revert to the FSCS.