FSCS begins paying out on Direct Sharedeal claims

The FSCS started accepting claims from Direct Sharedeal customer last May, although it remains unclear whether the compensation burden will ultimately fall upon financial advisers as part of their levy. The Glasgow-based stockbroker entered administration in 2011 after alleged mismanagement of high risk CfD investments, with many investors claiming that their accounts were overtraded leading to substantial losses. A report by the joint administrators of the firm, Finn Associates, last year suggested claims could potentially reach up to £13m. Regulatory Legal, a law firm which acts ...