Advice firms dominate FSCS' default list in 2022/23 financial year

Life boat fund expects to continue receiving more in 2023/24

Sahar Nazir
clock • 1 min read

The majority of the firms that the Financial Services Compensation Scheme (FSCS) declared in default in 2022/23 were advice businesses, according to its 2022/23 annual report.

The lifeboat fund paid compensation to customers who had experienced losses from 563 different authorised financial services firms. It said it expects to continue to receive claims from customers in 2023/24 against firms that defaulted (failed) in 2022/23 and earlier. The FSCS also reported £15m in recoveries from failed firms - which it said helped reduce the cost of the annual levy for industry. Total losses and special payments were £671,537 in the year to 31 March 2023, compared with £599,261 in 2022.

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Your profession

'Cautious' wealth managers reduce exposure to US following Trump's return

'Cautious' wealth managers reduce exposure to US following Trump's return

Biggest negative US sentiment swing for 15 years

Sahar Nazir
clock 02 April 2025 • 1 min read
Titan Wealth snaps up Workplace Advice Group

Titan Wealth snaps up Workplace Advice Group

Acquired business will ‘work closely’ with Titan Wealth Planning

Sahar Nazir
clock 01 April 2025 • 2 min read
FSCS deposit protection limit could rise to £110,000

FSCS deposit protection limit could rise to £110,000

Proposal would take effect from December 2025 if approved

Sahar Nazir
clock 31 March 2025 • 2 min read