Investors knowingly misold worthless bonds may be able to claw back more of their cash from administrators, following an initial compensation payout.
The Financial Service Compensation Scheme said the administrator of Catalyst Investment Group, which was declared insolvent in 2013 after being found to have sold illegitimately issued bonds, was preparing to make its first payout from what it was able to recover from the firm.
The FSCS said it was not clear how much cash would be returned, however. Around £59 million has already been pain out in compensation to around 3,500 claimants.
‘FSCS expects to receive approximately 89% of this dividend under our assigned rights,’ it said in a statement.
‘The FSCS is consid…
Read the full article at: http://citywire.co.uk/wealth-manager/news/clients-of-failed-fund-group-may-claw-back-more-cash/a1072595