Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and 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 Big City Bright Future

Big City Bright Future

Big City Bright Future, the brainchild of BlackRock, is a three-week work experience programme for school leavers looking to forge a career in the City.

Play Kames' Ennett: Trump good for US high yield, but beware Europe

Kames' Ennett: Trump good for US high yield, but beware Europe

Kames Capital’s head of high yield David Ennett believes the changing political landscape will be a positive for the US, but negative for Europe in 2017.

Play Philip Milburn: why inflation won't run out of control

Philip Milburn: why inflation won't run out of control

Kames bond fund manager views inflation as more of 'scare' than a 'problem' and is positioning his portfolios accordingly.

Read More
Your Business: Cover Star Club

Profile: change is the only constant for Quilter Cheviot

Profile: change is the only constant for Quilter Cheviot

This is not the first time we have profiled David Miller, but at the time of his previous appearance his company looked very different.

Wealth Manager on Twitter