The Financial Services Compensation Scheme has declared two firms in default facing a collective 22 claims over investment advice.
FSC Investment Services Limited, formerly Ashwood Wealth Management Limited, is facing six claims.
The London-based firm has not filed its accounts on Companies House since June 2017. A liquidator was appointed to the business last month.
Administrators were appointed last year, when FSC’s client book and business were sold to a company called Hoyl Group for an initial consideration of £15,400. The administrators said FSC also owed nearly £58,000 to HMRC.
The other firm, Craig Mitchell Personal and Corporate Financial Planning, is facing 16 claims.
Back in April, the Financial Conduct Authority removed Craig Mitchell’s permission to conduct any regulated activities.
In a notice, the regulator said it had “serious concerns” about Mitchell and reckoned he “pose[d] a significant risk of harm to consumers”.
According to the FCA, there were 13 complaints against Mitchell back in April which had been upheld by the Financial Ombudsman Service where he had provided unsuitable investment advice.
As of that month, Mitchell had not paid redress to at least six of the 13 customers whose complaints were upheld.
He also failed to respond to information requirements, the notice said, and the Fos was investigating 10 other complaints against Mitchell at the time.
As a result, the FCA said it was not satisfied Mitchell had made adequate provision to meet his potential liabilities to customers.
Mitchell was authorised by the FCA back in January 2015. It wasn’t until January 2021, six years later, that the Fos began referring complaints to the FCA because Mitchell was not complying with the process.
As at 5 April 2021, Mitchell’s balance sheet showed a net asset position of £7,550.
None of the claims relate to pension transfer or British Steel Pension Scheme advice.
ruby.hinchliffe@ft.com
