Regulation  

FSCS still investigating Cornerstone claims

FSCS still investigating Cornerstone claims

The Financial Services Compensation Scheme (FSCS) has said it is still considering whether it can pay compensation to clients of Cornerstone Friendly Society.

In a statement, the FSCS said it would confirm whether it could pay compensation to customers of the firm as soon as it can but was not more specific.

It said: “The FSCS is working with the liquidators and regulators to understand what the liquidation means for the firm’s clients.

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“We are also liaising with West Yorkshire Police who are looking into the firm.”

Cornerstone Friendly Society went into liquidation on 16 June 2015, after the Prudential Regulation Authority made an application to the court on 7 April 2015.

At the time, the friendly society was being investigated by the West Yorkshire and Humber regional fraud team in connection with fraud and money-laundering allegations regarding pension investments.

West Yorkshire Police did not provide an update on its investigation when one was requested.

According to the FCA register, Cornerstone is in liquidation and has stopped taking on new business but is still authorised by the regulator.

Financial Adviser attempted to contact Cornerstone but it did not respond.