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Endowment claims still make up 88% of FSCS workload

The Financial Services Compensation Scheme paid out £149.47m in 2006/07 compared with £201.22m the previous year.

Eighty-eight per cent of claims related to mortgage endowments, with an average payout of £1,900, according to its annual report.

The general insurance sector saw the biggest total payouts, amounting to £65.9m compared with £93.19m the previous year.

Pension review payouts fell from £69.75m to £50.3m although the FSCS warns that big payouts are expected in 2007/08 and beyond. The average payout is currently £25,000.

Proposals to reform the FSCS, due to come into force in April 2008, will disband the pension review levy group although the FSA has yet to produce its final plans.

Investment payouts, including endowments, fell from £38.2m to £31.8m.

The FSCS is to introduce a splits’ category in 2007/08 and says the mid-point of its claims’ forecast range is around 8,000 claims relating to Exeter Fund Managers and BFS Investments.

Chief executive Loretta Minghella says: “The backlogs are all but gone and we are dealing with the majority of claims much faster and under budget.”


Getting personal

The DWP’s feedback statement puts more flesh on the bones of personal accounts.

Commercial mortgage online packager launches

Financial packager is launching a dedicated commercial mortgage subsidiary, site will aim specifically at providing brokers, IFAs and intermediaries with the best commercial mortgage package for their clients’ circumstances, accessed through a vast commercial mortgage lending panel. Brokers should be able to source the largest range of commercial mortgages in the market from […]

Adviser Fund Index

The defection of three members of Fidelity’s multi-manager team to Resolution Asset Management brought the subject of boutiques back to the front pages last week. Chris Ralph, Jason Collins and Simon Mungall will set up a multi-manager joint-venture towards the end of this year. The boutique will follow RAM’s established model, with ownership split 50/50 […]

Scot prov now accepts Icob business past age 70

Scottish Provident has announced it will now accept term protection business maturing after age 70 and scoping more than 10 years from both Cob and Icob authorised intermediaries.The Age 70 rule was abolished on June 6 2007. The FSA Board voted to scrap the rule, which restricted the sale of policies maturing beyond age 70 […]

European Opportunities: 'It’s nice when stock selection results in a macro tailwind'

Amid significant macro headwinds in August, Mark Page explains why his fund’s focus on stock selection has helped it outperform a falling market in August. BESbswyBESbswyBESbswyBESbswyBESbswyBESbswyBESbswyBESbswyBESbswyBESbswyBESbswyBESbswy


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