Blog: How the FSCS could destroy the advice industry

The uncertainty surrounding the FSCS is, in my view, potentially the most destructive event to the market, affecting financial advisers and business owners, and threatening the future of our profession. Because advisers' costs inevitably must be passed on, clients of compliant firms are required to pay compensation to the clients of firms that have gone bust. Perhaps a reasonable principle in theory. But taken to extremes it is a major threat, and the compensation scheme may be unsustainable. According to Regulatory Legal's Newsletter, dated 26 September, the potential FSCS liability ...