Fos fee complaint rejection raises FSCS questions

Mr Lowes previously said: “Following the collapse of Merchant, Reyker are now seeking to charge clients what seems to be significantly more than double what they were originally going to receive from Merchant; as much as £600 per investment. This cannot be permitted.”

Chris Taylor, founder and managing director of the Investment Bridge, similarly railed against the fees, telling FTAdviser: “The levels of the fees that Reyker are stating they will impose does seem cause for concern.”

Mr Lowes then questioned whether this fee could fall back on to the FSCS, stating that it “must surely meet any further costs given that these have ultimately arisen because of the failure of at least two, and in some cases, three UK financial services firms”.

In May, the UK Structured Products Association has said it is seeking a view from the Financial Conduct Authority on whether investors can take their claims to the FSCS.

Adrian Barnwell, head of risk management and strategy at Reyker, previously told FTAdviser that he doubts it will be possible for investors to claim through the FSCS.

He said: “There certainly was the opportunity to claim in relation to Keydata and Pritchard but it relates to the loss of the actual investments.”