FSCS costs to rise in 2010 as struc prod claims continue

In its December newsletter, it says claim volumes in some areas are in line with or below expectations, but adds the recent defaults of NDFA, Defined Returns Ltd and Arc Capital & Income mean the sector will continue to suffer the fallout of the financial crisis going forward. FSCS chief executive Loretta Minghella says: "We are now anticipating substantially higher claims volumes, and therefore costs, most probably affecting the Investment class and General Insurance Intermediation sub-class." Minghella says the FSCS expects defunct Keydata to generate as many as 5,000 new claims for...