In a series of correspondence between Mr Tyrie and FCA chief executive Andrew Bailey, the Treasury Committee chairman asked whether a review of the FSCS had begun, what it would cover and when it would be completed.

In Mr Bailey’s response, he confirmed that the funding review of the scheme was well underway and that over the summer, the FCA had spoken to stakeholders of firms, including industry associations and consumer groups.

This data is expected to be published at the end of November followed by a public consultation.

The FCA aims to implement the final rules by summer 2017, with the new arrangements taking effect from the 2018-19 levy year.

Mr Bailey said: “…The FCA's goal [is] that the FSCS is well-funded and sustainable, and that it supports confidence in financial firms and provides appropriate protections for consumers.

“To this end, we are working with the FSCS, Prudential Regulation Authority and the Treasury to examine whether there are practical ways to enhance the current funding model by improving affordability for firms without reducing consumer protections.”

Commenting on the response, Mr Tyrie said: "There has been talk of reviewing the FSCS levy since 2001, so this is not before time.

“I'm glad that the funding review is well underway, and that the scope of the review includes issues raised by the committee, such as the unpredictable nature of the levy.

“It is likely that this will be raised when the committee sees [Mr Bailey] next month."