The Financial Services Compensation Scheme (FSCS) is to begin accepting claims from Direct Sharedeal customers, although it remains unclear whether the burden will fall upon financial advisers.
The Glasgow-based stockbroker entered administration last year after alleged mismanagement of high risk Contract for Difference (CfD) investments. A report by the joint administrators of the firm, Finn Associates, earlier this year suggested claims could potentially reach up to £13m. On Friday, the FSCS confirmed the firm had been declared in default, with the scheme now inviting claims against it. It said: "FSCS expects that some customers of the firm may have claims relating to either shares or CfD investments." However, it has not yet confirmed whether the claims will fall wi...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
