Displaying items by tag: compensation

The Financial Conduct Authority and Prudential Regulation Authority have launched a consultation on the management expenses levy limit for the Financial Services Compensation Scheme (FSCS).

The FCA has launched a major review of the funding of the Financial Services Compensation Scheme due to soaring costs, including rising SIPP claims.

All remaining eligible London Capital & Finance (LCF) bondholders will receive an offer of compensation from the Government’s compensation scheme by 20 April.

The Financial Services Compensation Scheme (FSCS) declared 11 firms in default in March, including several wealth managers and a firm involved in BSPS transers.

The FCA has apologised for its handing of the collapse of London Capital & Finance (LCF) and the Connaught Income Fund Series 1 and has set out its approach to assessing related complaints.

The FSCS warned today that its levy for the coming year will soar by a third to over £1bn with SIPPs and “complex” pensions cases behind a big chunk of the rise.

FSCS chief executive Caroline Rainbird has revealed that the major factors pushing up the FSCS levy have been the surge in claims against Self-Invested Personal Pension (SIPP) operators and a rising trend of pensions-related claims.

The FSCS is working through nearly 1,000 potential claims against SIPP operator Guinness Mahon which collapsed in February.

The FSCS yesterday (1 April) declared Berkeley Burke SIPP Administration Ltd a failed firm and opened the door to claims that could eventually top £150m.

Soaring SIPP claims have forced the Financial Services Compensation Scheme to increase its levy for 2020/21 by £87m to £635m.