The number of compensation claims relating to failed investment firms has jumped 78 per cent over the last year with payouts for collapsed investment firms totalling over £105m.
The Financial Services Compensation Scheme has published its annual report for 2012/13 which reveals almost all the major claims against the investment intermediation class have been upheld.
The FSCS has paid out £29.6m in MF Global claims, £25m in Arch cru claims, £16m for spreadbetting firm Worldspreads, £6.5m for Pritchard Stockbrokers and £1.8m for Keydata.
The report also shows the number of new claims related to collapsed investment firms has gone up by 78 per cent from 6,899 in 2011/12 to 12,300 in 2012/13. Over the same period the uphold rate has gone from 81 per cent to 90 per cent, while the average payout for claims in the investment intermediation class has dropped from £16,467 to £9,488.
The FSCS has admitted it missed its target last year to decide on 90 per cent of claims within six months of a receipt of a claim, excluding those relating to savers in failed banks and building societies.
The FSCS decided on 84 per cent of other claims within the six month period, and says this was because many claims were complex and required further investigation and legal advice.
FSCS chief executive Mark Neale says: “Despite paying out substantial amounts of compensation in respect of Arch cru, Worldspreads and MF Global, our continuing work in managing the complex detail of the claims has meant that the FSCS has done less well delivering against some of our service standards than we would have liked.
“However we remain strongly committed to the six month delivery service standard for this sector and are doing everything we can to meet it.”