Financial Services Compensation Scheme  

FSCS declares two advice firms in default

FSCS declares two advice firms in default
 

The Financial Services Compensation Scheme has declared two advice firms in default after both were unable to meet claims against them.

Juno Moneta Capital Management Limited, formerly Corcillum Limited and trading as Morgan Peterson and BL Financial, was declared in default on May 6.

The FSCS has received two claims so far for the Cheltenham-based firm, of which both are for pension transfers.

The second firm, Westbury Private Clients LLP, was also declared in default on Friday (May 6).

According to Companies House, the company has been in liquidation since March 28, 2018.

Westbury Private Clients was authorised by the FCA on July 1, 2013 and is a wealth management firm.

It operated as a discretionary fund manager for the Westbury self-invested personal pension, which it launched in early 2014.

The FSCS said it has received 16 claims against the firm in total, of which 10 are in relation to Sipps, three for investment advice and three for pensions advice.

The claims from customers highlight concerns that the firm did not carry out enough due diligence in relation to transfers or investments into the Westbury Sipp. 

The claims questioned the suitability of Westbury Sipp as an investment vehicle due to the high risk nature of the investments which led to investors losing money.

The FSCS is currently investigating whether the firm has breached Financial Conduct Authority rules, and whether it can pay compensation to customers.

Neither of the companies’ claims are linked to the British Steel Pension Scheme.

Last month, the FSCS named two companies suspected of trying to scam London, Capital & Finance (LCF) investors

Around the same time, it declared Integrity IFA in default after it believed the firm would be unable to meet claims made against it.

sonia.rach@ft.com 

What do you think about the issues raised by this story? Email us on FTAletters@ft.com to let us know