The advice community is likely to be billed a £30m interim levy early next year, mainly covering the cost of the Catalyst Investment group failure, which was declared in default in October.
The Financial Services Compensation Scheme (FSCS) faced a shortfall of £29.5m on investment intermediation, which it will claim in the first quarter of next year it said in its latest newsletter out today. The deficit is largely caused by the compensation payments due to clients of Catalyst, which were sold bonds worth more than £50m backed by the collapsed ARM Asset Backed Securities life settlements fund. The FSCS said it expects to start processing individual compensation claims and making payments to eligible claimants by the end of December. "We expect compensation costs to ru...
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