Financial Services Compensation Scheme  

Eight advisers among 30 firms in default

Eight advisers among 30 firms in default

The Financial Services Compensation Scheme declared eight advice firms in default in the final quarter of last year, alongside a pension and DFM provider. 

In an update published today (March 4) the industry-funded lifeboat scheme confirmed it had declared 30 firms in default between November 2019 and January 2020, which included eight advice firms, one Sipp administrator and failed "mini-bond" provider London Capital & Finance. 

Included in the list was advice firm Consumer Wealth, which went into liquidation last February with liabilities of £699,643 towards a total of 37 consumers. 

The firm also owed £14,649 to the Financial Conduct Authority, with liquidators estimating the adviser had just £81,191 in available assets to pay its creditors. 

In August FTAdviser reported the FSCS had received 110 claims against the collapsed Consumer Wealth, which was linked to the Greyfriars P6 investment, but at the time it had not been declared in default and no claims paid.

Another firm featured on today's list included advice firm NJ Associates Financial Services Limited, which defaulted in January with a compensation bill of £28,000. 

Claims against NJ Associates Financial Services involve self-invested personal pension complaints and those linked to mortgage endowments, with FSCS listed as a creditor for the firm on Companies House for the amount of £219,000.

The FSCS today confirmed to FTAdviser it had received 10 claims relating to Sipps and pension transfers against Facts & Figures Financial Planners Limited, an advice firm based in Ashford which also fell into default last year. 

The FSCS also declared failed Sipp administrator Avalon Investment Services in default in January, with FTAdviser since learning the lifeboat scheme had received 213 applications for compensation against the firm. 

As of February 3 the FSCS had paid a total of £264,000 against Avalon Investment Services, which was placed into special administration in February 2016 and dissolved in August 2018.

Other advice firms featured on the FSCS default list today included Yorkshire-based Phoenix Financial Associates Limited, Anthony Feeney Financial Services in the West Midlands, BlackStar Wealth Management Limited, Devon-based CGFM Limited, Parklands Wealth Limited in Somerset, and Economic Financial Solutions IFA Limited. 

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