Britain's financial services industry has a £218m bill from the Financial Services Compensation Scheme to bail out victims of mis-selling and insurance company failures, says this morning's Guardian newspaper.
Bulk of the money - £130m – will come from the insurance sector and be used to pay compensation to Independent Insurance and Chester Street Insurance Holdings policyholders, firms which both collapsed in 2001. This year’s levy is over twice the amount required last year, at £87.9m, and because other insurance firms will have to foot the bill, it is likely policyholders will eventually end up paying anyway, adds the Guardian. FINANCIAL institutions moved a record £22bn into gilts last year, as fixed-income investments were the most more popular asset allocation among insurance companie...
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