Compensation to consumers who were clients of failed financial advisory firms has nearly reached £1bn.

The Financial Services Compensation Scheme has revealed that it is on the verge of the milestone for defunct IFAs.
The organisation has also reported that the total compensation for insurance policies has just topped the £1bn mark.
The FSCS released a statement this warning informing of the figures, saying: "Thousands of consumers are better off thanks to FSCS protection for investment advice.
"The scheme is approaching the billion pound mark in compensation relating to failed independent financial advisors.
"In total, FSCS has paid out more than £975m in compensation to consumers after the default of financial advisers or firms. It has dealt with the default of 2,391 independent financial advisers since it was set up in 2001 while handling more than 165,000 claims."

{desktop}{/desktop}{mobile}{/mobile}

The FSCS, which protects deposits, investments, insurance and mortgage broking, said it has come to the aid of thousands of policyholders since its inception.
FSCS chief executive Mark Neale said: "FSCS is there for consumers who have nowhere else to turn. Passing the billion pound mark in compensation for insurance is a major milestone.
"People rely on their insurance to protect them when things go wrong. And we protect their insurance if the worst should happen. Our message to people is simple: FSCS protects your insurance, investments and deposits."
Five weeks ago another batch of 14 firms were declared in default by the FSCS. These included four investment firms and three life and pensions companies.
The FSCS was set up by Parliament in 2001. According to its own figures, it has helped more than 4.5m people while paying out over £26bn in compensation when firms went bust.

Get FREE daily news summaries direct to your inbox. Sign up on the homepage now.
Follow us on Twitter and get frequent news alerts @FPM_online.
Or follow Editor Kevin O'Donnell - @FPM_Kevin or staff writer James Nadal - @FPM_James.
For the latest Sipp, SSAS and retirement news visit our sister news site www.sippsprofessional.co.uk and on Twitter @SippsPro.