FSCS reverses firm's default after error

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FSCS reverses firm's default after error
Newell Palmer Group Ltd was incorrectly declared as failed by the FSCS last week (Pexels/Oscar Portan)

The Financial Services Compensation Scheme has reversed a declaration of default against an advice firm after it was made in error.

The FSCS said Newell Palmer Group Ltd, trading as Newell Palmer Partnerships Ltd, failed last week (March 24), with one upheld claim against it.

Ascot Lloyd announced it had acquired this firm back in December 2018.

The industry lifeboat scheme said it contacted Ascot Lloyd during the investigation, who provided information regarding liabilities.

A spokesperson for the FSCS said: “Ultimately, the information received from Ascot Lloyd in relation to a specific claim was misinterpreted about whether Ascot Lloyd continued to hold liability for the activities of Newell Palmer Group Limited, and who would deal with claims against the firm.”

Newell Palmer was first granted permissions from the Financial Conduct Authority in December 2002, and these were cancelled in May 2020 after the company was acquired by Ascot Lloyd in December 2018.

A declaration of default happens when the FSCS is satisfied the firm cannot meet eligible claims made against it.

A spokesperson for Ascot Lloyd said the company does not comment on outstanding claims. 

FSCS activity

Since the start of the month, the FSCS has declared six firms in default.

This includes DAC Pensions, which failed with nearly 500 claims against it.

Other firms which were declared in default include Portal Financial Services and Green Gem Financial.

Portal had the highest uphold rate between July and December last year, Fos data shows

The company had an uphold rate of 90 per cent overall, all of which was for decumulation and pensions.

The Fos received a total of 79,921 new complaints in this period, compared to 72,978 in the first six months of 2022 (H1 2022). 

It upheld 34 per cent of complaints in the consumers’ favour compared to 37 per cent in H1 2022.

For decumulation life and pension complaints, there were a total of 3,842 new complaints compared to 4,193 in H1 2022.