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FSCS payout over Honister nears £1 million mark
by Michelle Abrego on Aug 30, 2013 at 11:06
The Financial Services Compensation Scheme (FSCS) has paid out nearly £1 million over the collapse of Honister Capital.
Honister was declared in default by the FSCS in May and, according to a FSCS spokeswoman, the scheme has paid out over £960,000 in relation to 63 claims.
In May the FSCS asked claimants to resubmit their claims following the default, including claims that had previously been rejected. It also asked for any customers of Honister firms who believe they had been mis-sold an unregulated collective investment scheme to contact the scheme to make a claim.
The scheme said it has received 418 claims against Burns Anderson, Sage and Honister Partners. Of those claims, the FSCS said it had made decisions on over 200, including over 140 rejections.
In June, the FSCS had made 150 claim decisions and paid out £550,000 over 44 claims.
Honister entered administration on 3 July 2012 after not being able to obtain professional indemnity insurance.
Honister struggled to obtain professional indemnity insurance in part because of legacy claims against firms within the group, including £6 million of impending claims against IFA network Burns Anderson.
In August 2012 Honister’s administrators Grant Thornton said the group had £14.5 million in liabilities relating to 55 claims.
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