Regulation  

FSCS opens door to compensation payouts over 24 firms

FSCS opens door to compensation payouts over 24 firms

The Financial Services Compensation Scheme has declared a further 24 firms in default, including several advisers and mortgage brokers, pacing the way for industry-paid for redress to consumers.

Among them is dissolved Northern Ireland-based financial advice firm Kellands, which faced a series of claims against it at the Financial Ombudsman Service which will now pass to the FSCS.

In the past four years, Kellands has faced 16 ombudsman cases against it, with all of them being upheld.

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The company was dissolved in May 2017 with the director telling FTAdviser this was happening for health reasons.

Alex Kuczynski, director of corporate affairs at the FSCS, said: “The FSCS steps in to protect consumers around the UK when authorised financial services firms go bust. This vital service, which is free to consumers, protects your deposits, investments, home finance and insurance.

"We want anyone who believes they may be owed money as a result of their dealings with any of these firms to get in touch as we may be able to help you."

Since it began in 2001, the FSCS has helped more than 4.5m people, paying out more than £26bn in compensation.

Today's list also includes several advice firms and mortgage brokers, including Bristol-based firm Kingsland Financial Management and Essex-based The FG (IFA) Limited.

damian.fantato@ft.com