In 2008/09, the FSCS received 8,730 claims against IFAs and found that 3,640 justified compensation totalling £33,095,000.
Over 2008/09, the FSCS had just 54 claims against mortgage intermediaries and it deemed only 13 cases suitable for compensation, which totalled £335,700. In 2007, the FSCS paid out no compensation on mortgage intermediary failures.
Norwest Consultants principal Harry Katz says: “How many of these firms are still trading under a different entity and why is it allowed? The companies accused do not pay this levy, guys like me do.”