FSCS

Woodford Campaign Update 14

Vote outcome and Court Hearing 18 Jan 2024  OUTCOME OF SCHEME MEETING  A single meeting of Scheme Creditors (the Scheme Meeting) was held on 13 December 2023. Work is ongoing to verify the votes cast at the Scheme Meeting, however, provisional numbers are set out below.   Over 54,000 Scheme Creditors attended the Scheme Meeting in person, or by proxy. Of the Scheme Creditors who voted, approximately 93.7% in number, representing approximately 96.1% in value, voted in favour of the Scheme.  Of the three voting ...

Woodford Campaign Update 13

Link Scheme Voting Considerations URGENT: ACTION REQUIRED: VOTE NOW  THE “SCHEME” – WOODFORD EQUITY INCOME FUND COMPENSATION  The FCA has agreed a compensation approach using a Scheme of Arrangement which must now be voted on and approved by Creditors (relevant investors in Woodford Equity Income Fund). If approved, the Scheme must then be sanctioned by the High Court. The Scheme has been devised as a mechanism for Link to reach a final settlement with ALL WEIF Investors, regardless of whether they are involved in ...

Discrimination Against High Net Worth Individuals?

The views expressed in this article are those of its author and not necessarily those of ShareSoc The cost of the Financial Services Compensation Scheme has been increasing substantially in recent years, as more mis-selling scandals have proliferated and firms have gone bust. This has led to complaints from those firms who fund the scheme and has led the FCA to undertake a “Compensation Framework Review”. This includes looking at possible changes to the scope of protection such as limiting it to “mainstream” ...

FCA Consultation on Changes to FSCS Scheme Compensation

The Financial Services Compensation Scheme (FSCS) pays out if you have lost money as a result of an authorised financial services firm going bust or otherwise being unable to pay compensation for various failings - for example a bank or stockbroker. The scheme is funded by a levy on services firms. The Financial Conduct Authority (FCA) is currently undertaking a public consultation on changes to the scheme. At present there are limits to the protection FSCS provides which vary by financial product. ...

Broken Brokers and Nominee Accounts

There is a great letter from a reader in this weeks Investors Chronicle on the subject of nominee accounts. Under the title "Broken Brokers", Jonathan Crozier says he used to work for Pritchard Stockbrokers who are one the brokers that went bust covered in previous articles. He complains about the low level of compensation under the Financial Services Compensation Scheme (currently £50,000) which he says is a ludicrously low figure for Mr Average. But this is the paragraph that made the most ...