Financial safety net cap cuts payments by £1bn over six years

By Dawood Fakhir (May 27, 2022, 2:29 p.m. BST) – The ‘lifeboat’ scheme for victims of bankrupt financial services companies has said it cannot pay around £1bn (1.26 billion) to clients over the past six years due to compensation limits in its policy.

Data released by the Financial Services Compensation Scheme revealed on Thursday that around £472 million of the £1 billion came from pension advice requests.

The scheme provides up to £85,000 in compensation for people who lose their savings and investments, including pensions, due to bad advice or failed businesses.

The FSCS believes that the current remuneration limits remain appropriate for most products and activities,…

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