Square Mile Securities Limited has been declared 'in default', leaving other adviser firms to stump up the cash to pay for compensation claims.
The Financial Services Compensation Scheme (FSCS) says the firm is unlikely to be able to pay the costs of compensation, estimated at up to £15m. However, those firms in the investment intermediaries sub-class (D2) will face higher FSCS levies to cover the bill. Jonathan Clark, director of claims at the FSCS, says: "We recognise that this announcement brings more unwelcome news for firms in the investment intermediaries sub-class. "We will be in a better position to clarify the potential costs once we start processing claims, and will keep the industry informed of developments and wil...
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