FSCS default investigations rise

According to FSCS figures, 376 firms were declared in default during the financial year 2005/06 compared to 286 in 2004/05. The FSCS states: “This is not because many firms have suddenly been going out of business, but is largely because of the way many endowment policies were sold – through small intermediaries such as independent financial advisers.” It says there are potentially thousands of firms which each sold a handful of endowment policies many years ago and are now no longer in business and may not have sufficient assets to meet claims made against them. This means such claims...