The Financial Services Compensation Scheme (FSCS) is facing claims worth around £2.55m for 12 investment and life & pensions firms newly declared in default - which would need to be paid for by investment adviser levypayers.
The firms, which consists of seven investment intermediaries and five life and pension advisers, racked up a total of 102 claims. Among them was Merchant Capital, the structured products arm of Merchant House Group, which went into liquidation last year. The firm's currently known claims amount to £771,000 from 35 investors, of which the FSCS has already settled 11 claims worth £95,000. Merchant Capital, the structured products division of Merchant House Group, ran into trouble after its custodian, failed brokerage Pritchards Stockbrokers, was forced to stop trading by the Financia...
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