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.
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