The Financial Services Compensation Scheme has paid out £1.9m to 39 claimants over defunct IFA network Alpha to Omega and is considering a further 376 claims.
The FSCS has rejected 18 claims on A2O so far.
This week, the FSA fined and banned former A2O compliance director Andrew Ruff £28,000 and former managing director Richard Lindley £14,000 for widespread compliance failings at the network.
The final notice against Lindley shows the regulator took into account that he did not “wilfully or deliberately disregard the compliance risk at A2O”. It says Lindley believed that Ruff was monitoring 100 per cent of high-risk business.
But the firm’s compliance records suggest the network only reviewed 41 per cent of cases identified as a Ucis sale between 2008 and 2009.
Philip J Milton & Company managing director Philip Milton says: “Will the FSCS look to pursue the directors for negligence to recoup some of the £1.9m in claims? I would hope it does this before turning to the industry with an extra levy.”