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16 firms default by FSCS

Declaring a firm in default opens the way for anyone who has lost money, as a result of dealings with such a firm, to make a claim for compensation to FSCS. The limit for investment compensation is £48,000.

Ron Devlin, interim chief executive of the FSCS, says: “FSCS&#39 role is to protect customers of financial services firms. It is important for people to know that there is an organisation that can help if they have lost money and the firm can&#39t pay.”

The declaration of default is the final part of a process whereby a regulated firm (for example, an independent financial adviser) is deemed by FSCS to be unable to pay claims for compensation against it. This is usually because it has insufficient assets, for example, because it has ceased trading or is insolvent.

FSCS is the UK&#39s statutory single compensation scheme covering investments, deposits and insurance. It provides a fund of last resort for consumers who have claims against regulated firms that are unable to pay them.


Number of loans falls in July

The CML in its latest market briefing says that even with continued signs of a cooling in the housing market, there is still the possibility of a renewed surge, early next year. It says: “The housing market is so strongly influenced by confidence. Firstly, the BOE may take its foot off the brake too soon, […]

Intermediaries top landlord poll

A further 36% of this number look for the best deals on a six-monthly basis.The mortgage market is always changing and by reviewing their arrangements regularly, canny investors are able to take advantage of favourable deals. Mortgage advisers are the most popular source of information about current mortgage products, with 60% of landlords turning to […]

GMAC-RFC – What it stands for

Bill Armstrong&#39s letter (Mortgage Strategy August 30) asks for clarification regarding GMAC-RFC&#39s name. The letters stand for General Motors Acceptance Corporation, Residential Funding Corporation. GMAC is the financial arm of General Motors (which at last count included Vauxhall, Opel, Saab and Daewoo) and the RFC bit identifies its mortgage activity. No doubt someone from GMAC(colloquially) […]

FSA receives 6,822 requests for application packs

Comparable figures for the general insurance sector were 13,282 registrations for an application pack and 9,191 applications for authorisation up until September 3. With regard to applications for authorisation the estimated breakdown was 5,044 from the primary insurance market and 4,147 from the secondary insurance market. Also, by the end of September 3, 9,614 letters […]

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Johnson Fleming set to host webinar on auditing auto-enrolment schemes

With 23 auto-enrolment compliance notices issued by the Pensions Regulator, and an evolving legislative landscape meaning previously compliant schemes may now be in breach of regulation, now is the time to think about auditing your auto-enrolment scheme. Johnson Fleming is hosting a webinar on 9 October at 11:00 on how to audit your scheme to ensure compliance, avoid breaches and fines and overcome data issues.


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