Covid-19 may drive to bankruptcy some 4,000 UK financial firms

Sheldon Mills

Some 4,000 British financial companies are expected to go out of business due to Covid-19 and related lockdowns and economic slowdowns, the Financial Conduct Authority (FCA)  said quoted by Reuters. Those firms were at “heightened risk” FCA said in an analysis.

The FCA surveyed 23,000 financial firms to check on their resilience to Covid-19, which last year triggered Britain’s worst economic downturn in 300 years.

“At end of October we’ve identified there are 4,000 financial services firms with low financial resilience and at heightened risk of failure,” said Sheldon Mills, the FCA’s executive director of consumers and competition.

“These are predominantly small and medium-sized firms and approximately 30% have the potential to cause harm in failure.”

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