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In 2021/22 the Monetary Companies Compensation Scheme (FSCS) recovered simply £16m from the estates of failed corporations.
Of this £13m was used to offset levies while £3m was handed onto shoppers whose claims have been above FSCS limits, in response to the compensation physique’s annual report.
The compensation physique additionally revealed that it has paid out over £114m to round 9,000 London Capital & Finance bondholders inside six months. It delivered this compensation as a part of a UK Authorities scheme, which was outdoors of its normal industry-funded work.
The FSCS’s whole compensation prices for the 12 months have been £584m. This held regular with the earlier 12 months’s whole (2020/21: £584m).
Levies raised have been £643m.
The compensation physique mentioned there have been £214m in losses that it couldn’t compensation shoppers for as a consequence of its present £85,000 restrict for many claims.
It made probably the most declare choices in a 12 months in its historical past.
Roughly 132,000 declare choices have been made, over 108,000 of which resulted in both paying shoppers compensation or serving to them to switch to a brand new funding/insurance coverage coverage.
Common buyer satisfaction ranges for the 12 months have been 84%.
Caroline Rainbird, chief govt of the FSCS, mentioned: “I’m happy to report that for the second 12 months in a row, we achieved file ranges of buyer satisfaction. Our prospects are on the coronary heart of every part we do and we’re repeatedly striving to enhance our buyer expertise.
“Throughout the previous 12 months, we additionally put vital vitality into promotion and prevention. The pensions and investments marketing campaign we began final 12 months has now reached greater than 7.4m folks, and we just lately launched two new channels to assist unfold consciousness of FSCS safety, by means of Instagram and a Podcast sequence known as ‘Defend your Cash with FSCS’. Elevating consciousness of safety, and our limits, contributes to shoppers’ skill to make knowledgeable decisions about their funds.
“It’s value noting that the compensation we paid to prospects in the course of the previous monetary 12 months doesn’t signify the complete quantity of monetary hurt being skilled. There have been £214m in losses that we couldn’t compensate prospects for, as a consequence of our restrict, which is presently £85,000 for many claims. We additionally can not compensate for the emotional loss related to monetary hurt which will be devastating. Stopping this hurt from occurring within the first place stays one of the simplest ways to handle this challenge and enhance outcomes for shoppers.”
The 2021/22 12 months noticed 66 monetary agency failures, in response to the report.
It additionally revealed that chief govt Caroline Rainbird acquired a efficiency associated bonus of between £25,000 and £30,000 for the 12 months, along with her £285,000-£290,000 annual wage.
Chief monetary officer Fiona Kidy additionally acquired a efficiency associated bonus of between £20,000 and £25,000.
Each had additionally been paid related efficiency associated bonuses in 2020/21.
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