The Financial Services Compensation Scheme (FSCS) has published its annual report and accounts for 2013/14. Points of interest in the annual report include:
- the FSCS paid out £243 million in compensation in 2013/14, compared with £326 million in 2012/13;
- compensation in the general insurance provision sector rose by £10 million from 2012/13, but fell in the investment intermediation sector to £71 million from £105 million in 2012/13. The fall was due to a drop in payment protection insurance (PPI) claims;
- the FSCS received more than 39,000 new claims in 2013/14, against 62,000 the year before. For the first time in four years the FSCS received fewer PPI claims (about 12,000 compared with 19,000 the previous year), which suggests that such claims coming to the FSCS have peaked; and
- claims, particularly for investments, are becoming increasingly complex, involving numerous parties and firms based overseas.