Unlike HMRC who have officially downed tools on historic claims to ensure they can address the demand for support from the COVID-19 outbreak, the statutory lifeboat that deals with claims from customers of authorised financial services firms seems to be getting busier rather than quieter. Recent articles from ftadvisor.com show that hundreds of new claims for compensation have reached the Financial Services Compensation Scheme or will be arriving shortly. Its website confirms it is ‘open and fully operational’ much like the Death Star was in Episode IV of the Star Wars saga.
With many of the claims seeking compensation for investments recommended by firms which no longer exist, is it possible that the FSCS is facing a tsunami of claims in the medium term where COVID-19 incapacitates more financial services firms to the point of insolvency?
Is the only sensible moment to swim towards a ship facing a tidal wave is when it is a lifeboat like the FSCS?