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

Industry needs to move away from 'chunky and complicated' reports

Industry needs to move away from 'chunky and complicated' reports

‘You should remember that the UK is a nation of skim readers’

Isabel Baxter
clock 08 May 2024 • 2 min read
Paraplanning 'not always' a stepping stone to becoming an adviser

Paraplanning 'not always' a stepping stone to becoming an adviser

‘Depends on the person and if they want the client-centric element’

Isabel Baxter
clock 08 May 2024 • 2 min read
OpenAI is the 'biggest financial adviser in the world'

OpenAI is the 'biggest financial adviser in the world'

'The transformative power of generative AI is undeniable’

Sahar Nazir
clock 08 May 2024 • 1 min read