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Inside Business

The FCA must focus on chasing the bad apples out

The costs of the financial watchdog’s compensation scheme have more than doubled in the last decade so this is clearly no time to be looking into reducing its scope, writes James Moore

Monday 06 December 2021 21:30 GMT
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<p>The FCA has launched a review of its scheme for people ripped off by firms which go insolvent </p>

The FCA has launched a review of its scheme for people ripped off by firms which go insolvent

The shiny suited thieves operating on the tatty fringes of the financial services industry have enjoyed a boom in recent years, seen most prevalently in the rising cost of compensating consumers when firms go bust after their misdeeds become clear.

The 2021-22 outlay of the financial services compensation scheme, which looks after these people, is projected to come to a record £717m. That number will be higher still in 2022-23.

It’s an ugly statistic, one which has rather flown under the radar. It looks even worse when you consider that the figure was just £277m a decade ago

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