The Financial Services Compensation Scheme (FSCS) has declared 12 financial advice firms in default in June and July.
There were 17 firms declared in default altogether of which 12 were financial advice firms, the FSCS confirmed. The number of firms in default has dropped since April and May, when 25 firms were declared in default by the body, however the number of advice firms has gone up from eight to 12. In order to be declared in default, the FSCS must be satisfied the firm is unable to pay claims for compensation made against it. In April, the FSCS confirmed it would levy firms £363m for the coming year but investment advisers would have to pay £88m - £4m more than originally anticipated. ...
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