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Compensation scheme pays out £33m for IFA failures

The Financial Services Compensation scheme has paid out more than £33m to consumers as a result of claims on failed IFAs over the past financial year.

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.”


Lincoln scraps annual admin fee

Lincoln Financial Group has removed the £100 annual admin fee on its retirement product Lincoln i2Live.

Light in the East

It is to be expected that markets run out of puff during a holiday period. The whole basis of sell in May and go away is predicated on wealthy landowners, who owned the bulk of shares in days of yore, closing up their London houses and retiring to the country for the season. Easter may not be quite such a vacational imperative but the streets of the City are undoubtedly quieter and it is not just the recession.

No fee for active Sipp clients

Hargreave Hale is offering a Sipp with no annual charge for active investors. Investors must generate over £250 commission a year to be eligible for the product. Pension admin will be outsourced to Dunstan Thomas.


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