Financial Services Compensation Scheme  

FSCS declares 7 advice firms in default

FSCS declares 7 advice firms in default

Seven advice firms have been declared in default by the Financial Services Compensation Scheme (Fscs) meaning customers could be in line for industry-paid for redress.

The seven firms are Beta 2 Limited, HBS Financial Planning, WJA Financial Services Limited, Key Financial Services, Mr Marco Pietropoli, The Oakdene Practice and London & Shire Insurance Services.

Nine other firms which sold general insurance were also declared in default.

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Once recognised by the Fscs as being in default – meaning their liabilities, in the form of compensation claims, exceed their assets - consumers could get back money they have lost as a result of their dealings with any the firms.

The compensation is paid for by the financial services industry through a scheme of levies.

In the case of advice firm failures, compensation payments will be made from levies collected from trading advisers, who often contribute thousands of pounds each.

This controversial arrangement – which has stoked the ire of many advisers who claim it is unfair - is currently under review by the Financial Conduct Authority, with a report on the issue due before the end of the year.

Mark Oakes, head of communications at FSCS said: “FSCS protects consumers around the UK when authorised financial services firms go bust.

“It protects your deposits, investments, home finance and insurance, and it’s free for consumers to use. 

“Our message to anyone who believes they may be owed money as a result of their dealings with any of these firms is please get in touch as we may be able to help you.”