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FSCS to fork out £6m over collapsed DFM Strand Capital

FSCS-Piggy-Bank-500x320.jpgThe 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.

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FSCS predicts claims against pensions advisers have peaked

The Financial Services Compensation Scheme is predicting that life and pensions advice compensation payouts will fall over the next year. In its budget for 2018/19 released today, the FSCS 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 […]

FSCS ups management expenses budget by £3.5m

The FSCS is budgeting an extra £3.5m to cover the cost of running the scheme this year. The management expenses levy, which is used to cover the cost of administering the scheme separately from any compensation payments made, proposed for 2018/19 by the FSCS today is £77.7 million, up 5 per cent on the previous […]

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Pimfa calls for DFMs to be exempt from FSCS levy

Newly-merged adviser trade body Pimfa is calling for the FCA to change how it plans to calculate the Financial Services Compensation Scheme levy, to take discretionary fund managers out of its remit. The FCA’s consultation on FSCS funding reform said all firms falling under its investment provision funding group are classiffied as product providers and […]

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Former Elevate IFA distribution head resurfaces at Sipp provider

Self-invested personal pension provider Curtis Banks has hired former Axa Wealth and Elevate IFA distribution head Dave Stratton as its sales director, as a trading update for the company reports a £4bn increase in assets under administration. Stratton was in charge of moving Elevate to Standard Life, following the acquisition in 2016. According to his […]

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