The Association of Professional Financial Advisers (APFA) has called into question the amount of money spent each year by the Financial Services Compensation Scheme (FSCS) on recoveries.
The adviser organisation - previously the Association of IFAs - said the industry had "no idea" how cost effective the scheme's budget for recoveries has been. The FSCS, which is paid for via annual levies from the financial services industry, has forecast it will spend a total of £7.7m in 2012/13 on recoveries. This has climbed from an original estimate of £3.9m for the period, and follows the £7.9m spent the previous year. Chris Hannant, policy director at APFA, said: "Most of this [budget] will go on legal fees. "These are significant numbers for the profession, but the worst of...
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