View more on these topics

FSCS: Recoveries totalling £300m have cut industry levy

Mark-Neale-at-office-in-2014-700.jpgThe Financial Services Compensation Scheme has recovered just under £300m from failed financial services firms since 2014.

Outgoing chief executive Mark Neale labelled the recoveries “unsung work” on behalf of the lifeboat fund which is a major contributor to public confidence in the industry.

The FSCS says the recovered funds have significantly reduced what advisers could have paid, despite the new £69m levy announced for this year last November.

Around £20m has been recovered from court proceedings against a number of lenders for excessive commissions as part of payment protection insurance over the past five years.

More than £50m has also been recovered as a result of Keydata litigation in relation to multiple IFA firms’ misselling of Lifemark investments.

Neale says recoveries will be central to the FSCS’s new strategy for the 2020s as it looks to keep levies down.

FSCS general counsel James Derbyshire says this will include more complex procedures.

FSCS levy hike backlash throws doubt on FCA supervisory control

“The usual avenues of recovery we pursue include actions against the firms we’ve declared in default, and their PI insurers. Increasingly, however, we are taking ever more complex recoveries action, and in those instances we tend to make use of our panel of law firms, who have both the expertise and jurisdictional reach to assist us.”

A new five-year business plan for the lifeboat fund is expected to be finalised before Neale’s departure in May.

Neale says: “I am very proud of the professionalism of our recoveries team in navigating complex cases to successful outcomes.”

A £20bn Government loan the FSCS to cover claims relating to the banking failures during the Global Financial Crisis in 2008 has now also been repaid.

Recommended

2

How to become a financial adviser: diplomas, degrees and workplaces

Information on how to become a financial adviser is sparse. Money Marketing speaks to advisers about what the requirements really are and how best to meet them. Speaking to financial advisers and planners today, each will have a unique and varied story about how they entered the profession. There are more than a handful of pathways […]

Latin America’s new presidents

By Thomas Smith, Fund Manager Two very different presidents from opposite ends of the political spectrum have recently taken office in Latin America’s two largest economies. Leftist Andrés Manuel López Obrador (AMLO) in Mexico and right wing former army captain Jair Bolsonaro in Brazil were both inaugurated in the past couple of months… To read […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There is one comment at the moment, we would love to hear your opinion too.

  1. Peter Blackburn 21st March 2019 at 10:17 am

    Yes, of course any recoveries are welcome. However, what was the total ‘loss’ that this figure of £300m is a proportion of? One can’t really judge how effective the recovery process is without knowing how much was ‘lost’ in total over the same period.

Leave a comment

Close

Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm

Email: customerservices@moneymarketing.com