The FSCS receives 270 complaints against a defaulting trustee
The Financial Services Compensation System received 270 claims against a trustee who failed to exercise sufficient due diligence on certain unregulated investments.
London-based Highpoint Trustees, formerly known as Citadel Trustees, defaulted with the body of the lifeboat earlier this week (May 18) after being disbanded on September 12, 2020.
The bailout program began receiving claims against the company in September 2020, with plaintiffs alleging that Highpoint Trustees failed to perform sufficient due diligence in relation to non-standard investments for which the company was either acting as as trustee, or as escrow agent.
But the FSCS has not yet paid compensation.
In a statement in September, the FSCS said: “This is a complex area and we are working closely with our legal team, firm administrators and other third parties to determine which regulated activity can be protected. by the FSCS and what levels of due diligence. the cabinet achieved.
In an update in February 2021, the FSCS said it was in the final stages of its investigation into Highpoint Trustees.
He said he has started to assess some examples of claims related to the following investments: Sustainable AgroEnergy Plc, EcoPlanet Bamboo, Merco Bonds, Forest Lakes, Global Forestry Investments and Eco-Synergies ltd.
Consulting firms have recently seen their FSCS tax explode due to corporate bankruptcies and increasing demands in the pension and investment market.
In January, the bailout program predicted its levy for the year to be £ 1.04bn, which was a 48% jump from last year’s total.
But the FSCS reduced that amount from £ 206million to £ 833million earlier this month (May 13) as it expects business bankruptcies and some allegations will be delayed over the years. coming years.
Consulting firms are still expected to contribute £ 240million to the tax. It’s the same as last year, as the class is expected to exceed its funding limits for the second year in a row.
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