Regulation  

FSCS pays out more than £500k over advice firms

FSCS pays out more than £500k over advice firms

The Financial Services Compensation Scheme has paid out £564,000 over claims against advice firms linked to footballers’ investment losses.

KFS Holdings and Formation Asset Management were declared in default by the FSCS in January and March respectively.

The companies, which were formerly known as Kingsbridge Financial and Kingsbridge Asset Management, had allegedly advised some well-known British footballers to invest in projects which went on to fail or be hit with tax bills.

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It was reported in The Sunday Times in November that 100 players were advised by Kingsbridge Asset Management and were reportedly face losses totalling £100m.

At the time a spokesman for the company said clients were “without exception” made aware of the products they were investing in.

According to the FSCS it has paid out £46,000 in relation to one claim against KFS Holdings while it has paid out £50,000 in relation to one claim against Formation Asset Management.

Meanwhile in relation to John Murray & Co, the Scottish arm of Kingsbridge which was declared in default in 2005, the FSCS has paid out £468,500 for 276 claims.

Formation Asset Management has gone into liquidation and was dissolved in November 2015.

According to the Financial Services Register KFS Holdings and Formation Asset Management are no longer authorised, nor is John Murray & Co, later known as Kingsbridge Advisors.

A spokesman for the FSCS said the claims relate to investments and life and pensions, and not to tax-related claims.

He added that the FSCS has not paid any tax claims to date.