FSCS shifts deadline for completing initial investigation into Drew (UK) to October
Although a completion of August 2019 was anticipated, initial investigations are now likely to be concluded by October 2019.
The UK Financial Services Compensation Scheme (FSCS) has changed the deadline for the planned completion of its initial investigations into Drew (UK) Financial Services. This becomes clear from the latest update posted by the Scheme into the matter.
FSCS says its investigations into the activities of the firm, which was based in the UK and operated as an Independent Financial Adviser (IFA), are ongoing. Specifically, FSCS’s focus remains on the alleged fraudulent sale of Gilts by an individual representing Drew (UK).
The Scheme remain in contact with the police and other organisations, including the Insolvency Practitioner, in progressing its understanding of the alleged fraud with a view to determining whether customers have valid (protected) claims against the firm.
Although a completion of August 2019 was anticipated, initial investigations are now likely to be concluded by October 2019, at which point FSCS aims to be in a position to conclude its findings and pass claims to its assessment teams.
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.