New Cru claims heighten risk of extra FSCS interim levy

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The Financial Services Compensation Scheme (FSCS) said it is continuing to receive claims in respect of the CF Arch Cru funds, and has put the likelihood of a further interim levy for 2013-14 as ‘medium'.

The scheme is forecasting a deficit of £1.2m between now and the end of June next year in its investment intermediation class, meaning advisers may be asked to contribute further to compensate customers in the failed funds, as well customers of collapsed stockbroker Fyshe Horton Finney. New firm defaults have led to further claims in respect of the Arch Cru funds, the FSCS said in its August newsletter. Meanwhile, the scheme confirmed it had ceased paying claims under an ‘interim payment' approach announced in April last year. Under that system, some 1,000 Cru investors with eligible ...

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