The Financial Services Compensation Scheme’s (FSCS) budget of 1.04 billion pounds for the 2021/22 financial year that starts in April is its highest in six years. The FSCS also said it would add 78 million pounds to the current year’s budget - a lower than expected increase - due to more firms failing, pushing the total for 2020/21 to 700 million pounds. The body is responsible for compensation arrangements for the Financial Conduct Authority, which warned this month that around 4,000 financial firms in Britain were at “heightened risk” of collapsing due to fallout from the pandemic. The FSCS, which is financed by a levy on financial firms, also expects more claims for complex pension advice, and further failures in operators of self-invested person pensions (SIPPS). The FSCS is in talks with the finance ministry over compensation for LCF investors beyond what it has already paid out.

Source: bd News24 January 23, 2021 10:41 UTC