The Financial Services Authority (FSA) look set to bow to pressure and start to investigate so called "Phoenix" financial advisers who close their business due to mounting debts and compensation claims leaving the Financial Services Compensation Scheme (FSCS) to pick up the compensation tab, incidentally paid for other financial advisers.
They then 'rise from the ashes' just days later with the same personnel and business make up, effectively the same business, but with a new, almost identical, name having shed their liabilities.
Our view
About time!
Why should our levies to the compensation scheme increase five-fold in the last year to bail out companies that declare insolvency and then the owners are approved to trade again by the authorities again seemingly a few days later with no liabilities?