The FSCS said it has dealt with the default of 2,391 independent advice firms since it was set up in 2001 while handling more than 165,000 claims in relation to defunct adviser companies.
In September the FSCS had paid out a £37M due to the collapse of three IFAs; advice group Honister Capital and marketing firm Catalyst Investment Group.
The FSCS had paid out over £24 million in relation to 1,555 Catalyst claims since the scheme began accepting claims against the investment marketing firm on 28 March 2001.
Honister Capital comprised of IFA networks Burns Anderson and Sage Financial and national Honister Partners. It entered administration in July 2012 after it was unable to secure professional indemnity insurance to cover historical liabilities.
In 2013 the FSCS also revealed it had paid out £25 million in compensation related to the failed Arch Cru funds. The scheme has also paid out over £1 billion for insurance compensation.
Mark Neale, FSCS chief executive said:
“FSCS is there for consumers who have nowhere else to turn. Our message to people is simple: FSCS protects your insurance, investments and deposits. We’re here for you.”
The compensation scheme is funded by a levy on financial services companies, including Independent Financial Advisers. It is important to know that you are dealing with a regulated adviser, otherwise the FSCS may not apply. You can look up any financial advisory firm or individual adviser on the FCA’s Financial Services Register.
