The Financial Services Compensation Scheme has declared 16 adviser firms in default, including an IFA that spearheaded an Arch Cru judicial review challenge which was later refused by the court.
The FSCS said it has started paying compensation in respect of the recently defaulted firms.
By declaring the firms in default the FSCS believes the companies are unable to pay claims for compensation against it. It must also have received at least one claim against the firm.
The 16 advice firms declared in default include:
• Coull Money (Leamington Spa), who launched a judicial review into the FSA’s £54m compensation package on behalf of Arch Cru investors;
• ACG Financial Management Ltd (Liverpool);
• Philip M Derbyshire & Company Ltd (Cheshire);
• Transglobe International Financial Advisers, formerly The Carbon Partnership Ltd (Harrogate);
• Cornovii Investment Management Ltd (Stoke-on-Trent);
• David James Financial Services Ltd (Nottingham);
• Peter G Bodington & Associates (Leicestershire);
• Independent Mutual Ltd (Melton Mowbray), whose chief executive waited three months for the FSA to deauthorise him;
• 141107 Limited, formerly G D Tancred Financial Services Ltd (Peterborough);
• Green Denman & Company (Hassocks);
• Helmlake Financial Services Ltd (Surrey);
• Meads Financial Consultants Limited (Eastbourne);
• Opulen Management Ltd (Hampshire);
• Stirling Associates Ltd, formerly Lansdown Financial Services Ltd and Stirling Associates (UK) Ltd (Cheltenham);
• G Fleming, C Morrison & J Ferris t/a Raith Insurance & Financial Services (Cheltenham); and
• Clark Rees LLP (Cardiff), who the FSA fined in 2011 for advice relating to unregulated collective investment schemes.