The Financial Services Compensation Scheme (FSCS) has recovered almost £300m from failed financial firms over the past five years, which it said would reduced the levy burden on the firms that fund the scheme.
In order to reduce the costs of compensation for its levy payers, the FSCS seeks to recover amounts of compensation it has paid out from any party that it considers has a legal responsibility. As part of the process of paying compensation to out-of-pocket customers of a firm in default, the legal rights of clients are transferred to the FSCS. The lifeboat then stands in their shoes to pursue any recovery actions. The FSCS explained a recovery action is a legal claim it pursues in order to recover the compensation it has paid out to customers of a failed firm. This can be through a for...
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