Wealth Manager - the site for professional investment managers

Register free for our breaking news email alerts with analysis and cutting edge commentary from our award winning team. Registration only takes a minute.

Pritchard and Worldspread failings leave £25m FSCS hole

6 Comments
Pritchard and Worldspread failings leave £25m FSCS hole

Investment firms should expect to face an interim Financial Services Compensation Scheme (FSCS) levy next year as the body announced it is projecting a shortfall of £25 million in the investment intermediation sub-class.

The supplementary levy is due to higher than expected costs over the failure of Pritchard Stockbrokers, which went into administration earlier this year, and spread betting company Worldspread.  

The FSCS expects to pay out £16 million in compensation over Pritchards, and a further £17 million for Worldspreads.

Fund managers should not expect to cross-subsidy the investment intermediation sub-class class, the FSCS said, although the final decision on the interim levy will not be made until later in the final year.

Investment intermediaries have paid out £66 million to the FSCS so far in 2012, leaving £34 million in ‘headroom’ for further compensation costs before fund managers will be asked to contribute.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Boutique tapes: my business will never be sold

Boutique tapes: my business will never be sold

In the final part of our four part series we discuss consolidation and whether it's getting tougher for boutiques to survive.

Play Boutique tapes: are top managers better off at small firms?

Boutique tapes: are top managers better off at small firms?

In episode three of our series, boutique bosses discuss whether the best fund managers are more likely to thrive at smaller firms.

Play Boutique tapes: if you want a Ferrari, you have to pay for it

Boutique tapes: if you want a Ferrari, you have to pay for it

In the second part of our four-part series, boutique bosses are asked how they can justify the fees charged by active managers.

Read More
Your Business: Cover Star Club

Profile: how this boutique beat the big guns of wealth

Profile: how this boutique beat the big guns of wealth

This small west country offshoot of a local IFA scooped a 2018 Citywire award from beneath the noses of the national challengers

Wealth Manager on Twitter