Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of 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 Navigating geopolitical risk with ETFs

Navigating geopolitical risk with ETFs

ETFGI’s Deborah Fuhr on how investors can use exchange-traded funds to position their portfolio.

Play Sarasin’s Boucher: why I like salmon with chocolate

Sarasin’s Boucher: why I like salmon with chocolate

Henry Boucher, manager of the £129 million Sarasin Food & Agriculture Opportunities fund, explains why he is gobbling up salmon and chocolate stocks.

Play Alibaba hype, the UK slowdown and opportunities in European sovereign bonds

Alibaba hype, the UK slowdown and opportunities in European sovereign bonds

Libby Ashby and leading wealth managers analyse what the Alibaba IPO hype means for Chinese equities, slowing growth of the UK economy and whether there’s anything left to play for in the European sovereign bond market.

Your Business: Cover Star Club

Profile: Barclays' former advisory boss on his move into property

Profile: Barclays' former advisory boss on his move into property

On paper, Rick Denton might have been expected to finish his career in banking

Wealth Manager on Twitter