Clients of a Liverpool-based wealth management firm face a further wait to find out whether they will be reunited with their money.
Blankstone Sington was put into default by the Financial Services Compensation Scheme this week, two years after the FCA stopped it from accepting new clients or disposing of its own assets.
However, the FSCS said it still remains closed to claims while it carries out the necessary work.
In an update on Tuesday (February 6) the FSCS said: "We have now taken the next step by declaring the firm in default. This is something we have to do as it confirms that FSCS believes the firm owes money to its customers and cannot meet the costs of any claims itself.
"We still remain closed to claims, so Blankstone Sington’s customers do not need to do anything at this point. There is still a considerable amount of work to do before customers can be reunited with their money and assets."
Back in December, the lifeboat scheme explained it expected to be able to pay compensation to eligible customers of Blankstone Sington.
Towards the end of 2023, the firm was placed in special administration by the Financial Conduct Authority, following a court order.
Andrew Poxon, Alex Cadwallader and Hilary Pascoe of Leonard Curtis were appointed joint special administrators.
The FCA said in the first instance, affected clients should go to the administrators if they have concerns.
The FSCS added: "We're continuing to work closely with the Joint Special Administrators and will provide further updates, including timescales, when that information is available."
tara.o'connor@ft.com
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