The Financial Services Compensation Scheme (FSCS) said it is expected to make a £40m payout after discretionary fund manager WealthTek went into administration.
This was confirmed in a witness statement by FSCS recoveries finance manager Guy Enright in a court hearing. The total of £40m includes compensation of approximately £22m to cover client asset and client money shortfalls and transfer costs that are reserved at £18.4m million, the lifeboat fund confirmed. So far, the FSCS has made 22 hardship payments costing a total of £949,000. Enright said that the maximum that can claimed by the scheme by clients affected is £85,000. He noted that 79% of clients have shortfalls less than £62,000 so will therefore be compensated in full, 4% of...
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