The Financial Services Compensation Scheme (FSCS) expects to pay out £60m in claims against failed ARM bonds distributor Catalyst Investment Group this year.
In its November Outlook the scheme said it has received almost 4,000 claims against Catalyst and expects to pay out £60m in 2014/15. The FSCS has settled 1,800 claims worth a total of £26m so far, after it began inviting claims in March this year. Catalyst, which promoted funds backed by Luxembourg-based ARM Asset Backed Securities, was declared in default by the regulator on 4 October 2013. The decision to invite claims against the firm contributed to pushing up investment advisers' share of the FSCS levy by £30m. The scheme forecast £159.5m in investment claims for the current...
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