Financial Services Compensation Scheme  

FSCS pays out £3.75m on Greyfriars claims

FSCS pays out £3.75m on Greyfriars claims

The Financial Services Compensation Scheme (FSCS) has paid out £3.75m on 88 successful claims against troubled wealth manager Greyfriars Asset Management but many more are still to come.

In total, the lifeboat scheme has received 484 claims to date against Greyfriars Asset Management, of these 263 are in progress and 133 were unsuccessful.

The majority of these claims (380) relate to self-invested personal pensions, the scheme said.

Greyfriars was declared in default by the FSCS in April last year, after the lifeboat fund received at least one eligible claim against the firm.

According to the FSCS, claims submitted against Greyfriars typically relate to a number of investment portfolios offered by the DFM. 

The portfolios were numbered one to six and the Financial Conduct Authority (FCA) had previously expressed concerns about Greyfriars’ Portfolio Six (P6) offering in particular.

In 2016 the FCA instructed Greyfriars to stop accepting any new money into the portfolio on a permanent basis.

Greyfriars’ P6 was made up of a variety of unregulated overseas property-based corporate bonds, with at least one of these going into administration since. 

The FSCS is also accepting and assessing claims against IFAs, which have already been declared in default by FSCS, who advised their clients to invest through Greyfriars.

The FSCS said many of these individuals were advised to transfer their existing pensions into Sipps made up of high risk, non-standard investments, many of which have now become illiquid, which means they can’t currently be sold or traded.

Administrators were appointed to Greyfrairs in October 2018, shortly after Hartley Pensions bought the wealth manager's Sipp and small self-administered scheme (Ssas) businesses for £820,000.

The advisory arm of Greyfriars was sold to Insight Financial Associates for £440,000 in the same month, while its discretionary fund management division had already been wound down in 2017. 

amy.austin@ft.com

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