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

Professional Adviser TV: Breaking down barriers for career movers and young talent

Professional Adviser TV: Breaking down barriers for career movers and young talent

‘Where do they go if there’s no opportunity for them’

Professional Adviser
clock 12 September 2025 • 1 min read
Feel Good Friday: IFA duo take on 240km charity cycle challenge

Feel Good Friday: IFA duo take on 240km charity cycle challenge

Andrew Home and Chris Miles raise funds for Eternal Flame

Professional Adviser
clock 12 September 2025 • 1 min read
My Care Hub expands to public following strong adviser support

My Care Hub expands to public following strong adviser support

Advice sector has played ‘pivotal role’ in successful rollout of care guidance platform

Jenna Brown
clock 10 September 2025 • 4 min read