SRA interventions …..a costly exercise.

The average cost of an SRA intervention is about £250, 000 and the rule of thumb is that it costs about £1, 000 per active file. This would tie in with the fact that a lot of the intervened firms are obviously very small.

The Wolstenholmes intervention seems to be one of the largest ever interventions. Some People of the Money Saving Expert posting “ Warning – Do not use Wolstenholmes” are suggesting that the intervention agents DWS are having to employ over 100 on the job and that the number of files runs to 4000.

Some of those with early claims for compensation have been giving details. Ominously, the first 2 are for £20, 000 each.

Basic arithmetic puts the cost of this intervention alone at least £5 million. The net amount of compensation paid depends very much on how much is available in the frozen client account.

The big question that many in the profession ( and ex Wolstenholmes clients ) is asking is whether the SRA intervened early enough?