Ifas can be held liable for mis-selling which may have occurred in relation to three Stirling Mortimer funds, the FSCS has announced.
In a statement, the compensation scheme said it is now able to start processing claims in relation to investments in No.4 Cape Verde fund, No.6 Morocco fund and No.7 Cape Verde II fund, which were unregulated property funds.
The FSCS’ statement said: “Based on the evidence that is available we are satisfied that, where mis-selling can be proven, the IFAs can be held liable for any losses suffered by customers in relation to the three Stirling Mortimer funds.”
Earlier this year the FSCS said it was delaying making any decision regarding payments on claims against three Stirling Mortimer funds as they were being investigated by the SFO.
In January the scheme said it was considering the implications of the SFO’s investigation.
Adviser view
Matthew Bird, an investment adviser with Newport-based Seer Green, said: “If they were unregulated then advisers should be held liable because I would always be very cautious about that. The charges with these things are generally high and they are generally invested in unproductive assets which the average person shouldn’t be putting any capital near.”
