The Financial Services Compensation Scheme (FCSC) "continues to be challenged" by the complexity of some firm failures in the investment intermediation sector, its chief executive Mark Neale has remarked.
Citing the recent collapse of Catalyst, which promoted funds backed by ARM Asset Backed Securities SA, as an example of a complex case, Neale said the Scheme often finds it difficult to determine whether investors' losses are the result of bad advice or another factor. "[We continue] to be challenged by the complexity of many failures in the investment intermediation sector," Neale wrote in his latest Perspectives newsletter. "We turn round 90% of non-deposit claims within our service standards - three months for PPI [payment protection insurance] claims, six months for most others - ...
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