Financial Services Compensation Scheme  

Two advice firms fail amid FSCS investment claims

Two advice firms fail amid FSCS investment claims
 

Two advice firms facing claims have failed, according to the Financial Services Compensation Scheme.

June Moneta Wealth Limited, trading as Teal Financial, Empower Wealth Management and NAPIT Wealth has one claim of unsuitable investment advice against it.

The firm is based in Cardiff and had appointed representative FCA approval from 2015 to 2018 under its various trading names.

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Oracle Consultants has also failed. The firm has been trading at Incisive Wealth, Incisive Dental and Incisive Wealth since 2014, and although it is still authorised by the FCA, it was liquidated on October 1 this year.

The company currently has one general investment claim against it, according to the FSCS.

The lifeboat scheme recently said 78 per cent of its claims have an element of poor financial advice within them.

Chief executive of the FSCS, Caroline Rainbird, told FTAdviser’s Financial Advice Forum in September that bad advice contributes to “a significant amount of damage” that is caused in the industry.

“Sadly, there are a number of bad players - deliberately or misinformed - that come into the industry, cause immense damage and ripples across many areas and that’s the type of financial advisers that we see unfortunately.”

Last month, the FSCS told firms it was taking longer than normal to process claims.

In a letter to an advice firm seen by FTAdviser, the FSCS said in late September it was dealing with more claims than it usually does.

“We are working on these as quickly as possible and on the oldest ones first, but it’s going to take longer than we’d like to process your claim,” the FSCS told one advice firm.

“We’re unable to give an exact timescale, but please be assured that we are working as quickly as we can.”

The advice firm said it was waiting on a number of claims submitted in September last year which have not been touched by the FSCS since March 2022.

sally.hickey@ft.com