compensation

The Financial Services Compensation Scheme is stepping in to protect members of Greater Pollokshaws Credit Union Limited who may have lost money after the service became insolvent.

Prudential has announced it will stop paying customer compensation claims directly to third-party firms.

Exeter Asset Management and Teather & Greenwood have both agreed to contribute a combined fund to the split-caps compensation payout worth £1.3m, in a deal separate to the larger package negotiated at Christmas.

The Financial Ombudsman Service has just announced late joiners to the Equitable Life with-profits fund will now receive compensation payouts.

Overall cost to the financial services industry of FSCS-awarded compensation in the 2005-6 year should be lower, but it will be significantly higher for some contribution groups the scheme warns in its latest budget forecast.

Poor handling of endowment mis-selling complaints by financial services firms will increase the number of such cases passing through the Financial Ombudsman Service to around 70,000 cases a year until 2007, alleges the service.

Whitechurch Investment Services and Tudor House Financial Services are two of the 16 firms whose clients could now stand to gain from compensation paid from the Financial Services Compensation Scheme.

The Equitable Life Members Action Group has urged the Financial Ombudsman to open a fresh investigation into the mutual society's huge overpayment of bonuses during the 1990s, says this morning's Daily Telegraph.

Norwich Union has called for third-party endowment mortgage complaints handling firms to be regulated, to ensure consistent handling of mortgage complaints.

The Financial Services Authority has fined Capita Trust Company £300,000 and agreed £3.5m in compensation for mis-selling precipice bonds after buying the business from Royal & SunAlliance in 2001.