FSCS continues investigations into alleged fraudulent sale of gilts to Drew (UK) customers
The Compensation Scheme now expects its investigation to be completed by December 2019.
The UK Financial Services Compensation Scheme (FSCS) has provided an update on the investigation into Drew (UK) Financial Services, was based in the UK and operated as an Independent Financial Adviser (IFA). This has been expected as, back in August, the Scheme indicated its investigation would be concluded by October 2019.
However, in the latest update, FSCS said it is still conducting its investigations into the alleged fraudulent sale of gilts to Drew (UK) customers.
The insolvency practitioner has been helpful in FSCS’s understanding of the fraud allegations. But there is still more information to consider before the Scheme will be able to say that it has reached a conclusion.
FSCS now expects its investigation to be completed by December 2019. Then it will be able to pass claims to its assessment teams, and they will determine whether the claims are valid.
According to FSCS’s 2018/19 Annual Report, the Scheme paid a total of £473 million in compensation to 425,760 customers of failed firms during 2018/19. This amount compares with the £405 million FSCS paid in compensation in the previous year.
FSCS’s Report also shows the body raised levies on 49,224 regulated financial services firms, with a total levy income of £517 million, to fund the costs of compensation and of running the Scheme.