Up to 1,550 personal investment firms in line for 'redress capital' provisions

The FCA is beginning an "extensive programme of outreach" to the personal investment sector aboutproposed rulesthat will require firms which give "bad advice" to set aside "enough capital to compensate for it".

By Neasa MacErlean

Between 750 and 1,550 are expected by the regulator to have to make these extra provisions as a result. The plans reflect calculations which showed that 95 per cent of the £760 million paid out in compensation between 2016 and 2022 related to just 1.5 per cent of firms (75 out of a total of 5,000).