More than 600 adviser firms have been declared in default by the Financial Services Compensation Scheme (FSCS) in the last five years - an average of almost 130 each year - as the impact of a number of high-profile investment failures continues to take its toll on the industry.
According to figures obtained by Professional Adviser, and including data for 2015 to date, a total of 664 firms have been declared in default by the FSCS since the beginning of 2010. In the five full years since 2010, the total stands at 635, representing an average of 127 firms every year. The data relates only to firms in the ‘investments intermediary' and ‘life and pensions intermediary' sectors as determined by the FSCS; the scheme also covers, among other sectors, deposit takers and insurers. Adviser firm defaults have regularly been sparked due to claims related to investments ...
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