Advice firms dominate FSCS' default list in 2022/23 financial year

Life boat fund expects to continue receiving more in 2023/24

Sahar Nazir
clock • 1 min read

The majority of the firms that the Financial Services Compensation Scheme (FSCS) declared in default in 2022/23 were advice businesses, according to its 2022/23 annual report.

The lifeboat fund paid compensation to customers who had experienced losses from 563 different authorised financial services firms. It said it expects to continue to receive claims from customers in 2023/24 against firms that defaulted (failed) in 2022/23 and earlier. The FSCS also reported £15m in recoveries from failed firms - which it said helped reduce the cost of the annual levy for industry. Total losses and special payments were £671,537 in the year to 31 March 2023, compared with £599,261 in 2022.

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Your profession

Adviser workload set to rocket ahead of IHT on pensions changes

Adviser workload set to rocket ahead of IHT on pensions changes

Large volumes of clients will need reviews of financial plans

Isabel Baxter
clock 15 December 2025 • 3 min read
Advising silver splitters: Legal insight for older clients getting a divorce

Advising silver splitters: Legal insight for older clients getting a divorce

Why is divorce becoming more common in older clients?

Katharine Bundell
clock 15 December 2025 • 4 min read
Wren Sterling adds £900m AUM with London-based IFA acquisition

Wren Sterling adds £900m AUM with London-based IFA acquisition

Evans Hart brings nearly 2,500 clients to the group

Sahar Nazir
clock 12 December 2025 • 2 min read