Regulation  

FSCS lays ground for London broker default

A London-based brokerage is likely to be declared in default “shortly”, the Financial Services Compensation Scheme has confirmed, as it revealed that the firm’s administrators have said clients may be able to apply to the scheme directly for compensation.

The joint administrators of Morgans Insurance Broking Ltd, which entered administration in February, have said that clients may be able to make a claim directly to the FSCS. Where sufficient information is held, clients have been sent an application form.

According to the Financial Services Register, Morgans is currently authorised but has applied to cancel its permissions, which included investment, mortgages and pension advice. The register also states the firm is unable to hold client money.

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The FSCS said that when making a claim, client need to provide their full name and address, the full name of the advising firm they are claiming against, the date the advice was given, or alternatively when the investment/policy commenced and any supporting documentation as evidence of dealings with the firm.

The FSCS has not yet declared the company in default, however it is anticipated that a declaration of default will be made shortly.