FSCS reports 483% increase in investment intermediary claims
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The Financial Services Compensation Scheme saw a 483 per cent increase in claims against the investment intermediation sub-class in 2009/10, mainly due to the collapse of Keydata.
According to the FSCS annual report for 2009/10, 60 per cent of all new claims hit the investment intermediation sub-class, which paid out a total of £116.9m.
The investment sub-class received 24,301 claims, compared with 4,170 in 2008/09.
The FSCS says: “The significant increase is attributable to the high volume of claims we received as a result of the Keydata Investment Services Limited default. At the same time, claims against Pacific Continental Securities Limited and Square Mile Securities Limited continued in similar volumes to 2008/09.”
Of the 15,188 claims that were completed in 2009/10, 90 per cent resulted in an offer of compensation, with an average compensation payment of £10,799.
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Readers' comments (1)
Evan Owen | 22 Jul 2010 5:21 pm
Why doesn't the FSCS just pile everything on indermediaries and save all the hassle of the RDR?
Simples.
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