Financial Services Compensation Scheme  

FSCS declares raft of investment firms in default

FSCS declares raft of investment firms in default

A group of 20 investment firms have been declared in default by the Financial Services Compensation Scheme.

Meanwhile four life and pensions firms have been declared in default, meaning consumers can now get back money they may have lost as a result of dealing with them.

The FSCS has published its latest list of firms in default, with a total of 31 firms on the list.

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A declaration of default means the FSCS is satisfied a firm is unable to pay claims for compensation made against it.

Mark Oakes, head of communications at the FSCS, said: “The FSCS protects consumers around the UK when authorised financial services firms go bust.

“It protects your deposits, investments, home finance and insurance, and it’s free for consumers to use.

“Our message to anyone who believes they may be owed money as a result of their dealings with any of these firms is please get in touch as we may be able to help you.”

Since its inception, the FSCS has helped more than 4.5m people, paying out more than £26bn in compensation.

Last month the FSCS announced that the indicative levy for 2017/18 for life and pensions advisers alone will be £171m - a £45m increase on the current year.

The increase in life and pension claims is due to the number of cases relating to self-invested personal pensions, and advice given to invest funds in high-risk, non-standard assets through the pension wrapper.