ln August the FSCS started to investigate claims against the group.
Although the FSCS does not typically make compensation payments before a firm has collapsed, and the scheme has deemed it to be ‘in default’, it can act sooner if deemed necessary.
In the case of GPG, it told FTAdviser last August: “Some of the information suggests returns to creditors could be uncertain, potentially very low and also take a long time.
“In those circumstances, we can invoke COMP 11.2.9R to set a nil value for assessing claims, but we will then take over the investors’ interests and pursue recoveries. This is what we are doing in this case.”