The FSCS says it has yet to decide which sub-class will bear the potential costs of compensating clients of private client stockbroker Wills & Co, which has been declared in default.
The compensation scheme today confirmed Wills & Co would be unable to pay claims against it, triggering FSCS protection for its reported 19,000 customers.
If the FSCS decides to place the company, which earlier this year was stopped by the FSA from giving investment advice, in the same category as financial advisers, they will share the costs arising from any successful compensation claims in next year's FSCS levy.
The FSCS says it is working with the firm's directors and the financial ombudsman (FOS) to ensure all complaints made against it are transferred to the compensation body.
Once it has received complaint files and company records, it will begin writing to customers to inform them they may be eligible for compensation.
"We will look at sub-classes when we come to raise the levy," she says. "We will consider the class of business and type of claims and then levy the relevant sub-class."
In February 2010, the FSA confirmed it had stopped Wills & Co from giving investment advice and the firm began winding down its business and transferring customers to other FSA regulated firms.
In March, the FSA lodged a petition for the winding up of Wills & Co in the High Court.
Customers yet to submit complaints and wanting to make a claim should write to the FSCS. More information is available HERE.
Three years at Wells Fargo
Effective from 9 December 2019
One firm with permission suspensions left
Continuing the Architas education series for clients.
Needs to apply for authorisation