The Financial Services Compensation Scheme estimates it will pay out £6m over collapsed discretionary fund manager Strand Capital.
An administrator’s report published earlier in January shed light on a host of failings that led to the collapse of the firm, which was put into special administration back in May last year.
London-based Strand, which had around 3,000 clients and £86m in funds under management, has drawn considerable attention for its links with Kent-based DFM Gallium Fund Solutions.
Gallium itself has been linked with a number of high-risk British Steel Pension Scheme transfers.
In its budget for 2018/19 released today, the FSCS is predicting that life and pensions advice compensation payouts will fall over the next year.
It notes that while the three-year average for compensation claims over life and pensions intermediation is £83.8m, a falling trend from a peak two years ago should result in a comparable figure of £76.8m in the coming period.
This is despite a projected increase in the number of claims against life and pensions advisers from 6,720 to 7,162.
Investment advice compensation costs are set to drop from a £58m average to £39m, with 1,000 fewer completed claims expected
The FSCS has also pledged to claw back more money over failed Sipp cases through legal proceedings.