The UK Financial Services Compensation Scheme (FSCS) has provided an update to clients of IBP Markets Limited.

The Joint Special Administrators (JSAs) have recently updated their online portal to tell clients that a court hearing has now been scheduled for 23 November 2026. The hearing will consider the Distribution Plan proposed by the JSAs. The Distribution Plan will set the terms of the process the JSAs will follow when distributing custody assets. If it is approved, the Distribution Plan will allow the JSAs to start returning the remaining assets.

IBP is an FCA-authorised and regulated wholesale broker, providing custody services and access to equity and fixed income securities for non-retail clients.

On 13 October 2023, the Court appointed David Soden and James Bennett of Teneo as Joint Special Administrators of IBP.

FSCS’s position is that, for FSCS-eligible customers, it will meet several categories of loss. In particular, this includes any losses relating to the costs of returning custody assets (e.g. investments), as long as the particular assets are covered by FSCS’s rules. This will mean that FSCS-eligible customers should receive their assets back whole, subject to the approval of the Distribution Plan. There will be no deduction for special administration costs, subject to FSCS’s compensation cap.

Any compensation payable by FSCS is subject to the £85,000 compensation cap applicable at the date of Special Administration, per eligible customer, per firm. Customers will not need to apply to FSCS but they will need to follow any instructions given by the JSAs or their wealth manager.