FSCS

Conservative big-hitter David Davis MP has given a cautious welcome to the Financial Services Authority's (FSA's) Arch Cru redress scheme, although he has warned it may be harsh on financial advisers.

GOOD NEWS?

A law firm has told Arch Cru investors it is unlikely they will end up receiving the entire £110m redress the Financial Services Authority (FSA) is expecting advisers to pay out.

The IFA Centre has begun lobbying the Financial Services Compensation Scheme (FSCS) on alternative funding models for advisers - including a separate category for firms recommending riskier investments.

Less than 2% of Arch Cru investors have so far taken a complaint about the advice they received to the Financial Ombudsman Service (FOS), it has been revealed.

The Financial Services Authority (FSA) said it will be on the look-out for firms opting to close down their businesses to avoid paying into a redress scheme for Arch Cru investors.

The Financial Services Compensation Scheme (FSCS) has more than doubled the annual levy for financial advisers for 2012/13, largely as a result of known claims relating to Arch Cru and MF Global.

An FSCS Action Group petition, called Day of Action, campaigning on for a fairer Financial Services Compensation Scheme, received 1,421 signatures in total yesterday.

BRAVING IT

LIFEMARK