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Adviser compensation approaches £1bn mark

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Compensation paid out by the Financial Services Compensation Scheme (FSCS) to customers of failed advice firms has so far totaled almost £1bn.

In a post published on 6 November the scheme said since its inception in 2001 it has paid out more than £975m to 165,000 clients of a total of 2,391 failed financial advice firms.

Overall the FSCS helped 4.5 million people, paying out £26bn in compensation. Insurance accounted for more than £1bn.

Chief executive Mark Neale said the scheme has reached a “major milestone” in insurance compensation.

He said: “FSCS is there for consumers who have nowhere else to turn. Our message to people is simple: FSCS protects your insurance, investments and deposits. We’re here for you.”

The FSCS said in October it has so far paid out £21.2m in claims related to the collapse of adviser network Alpha 2 Omega (A2O) after finding widespread mis-selling of unregulated collective investment schemes (UCIS).

The scheme has also seen clients of large numbers of Arch Cru advisers claim from it.

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