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FSCS declares 12 financial advice firms in default

FSCS declares 12 financial advice firms in default

The Financial Services Compensation Scheme has declared 19 firms in default – including 12 financial advice firms.

It means clients of all these firms could now be in line for compensation.

The list of new firms in default also includes two mortgage brokers, a caravan dealership and a taxi garage.

Two of the firms in default had been banned from carrying out pension transfers by the Financial Conduct Authority after the regulator was given information which prompted "serious concerns" about the adequacy of their pension advice.

These firms - Financial Page Ltd and Henderson Carter Associates - had a relationship with an introducer called Hennessy Jones and both were told to terminate any and all business with the company.

Financial Page is currently in administration while Henderson Carter is in liquidation.

Mark Oakes, head of communications at the FSCS, said: “FSCS protects consumers around the UK when authorised financial services firms go bust.

“It protects your deposits, investments, home finance and insurance, and it’s free for consumers to use. Anyone who believes they may be owed money as a result of their dealings with any of these firms should get in touch.”

The firms in default include Essex-based Cavendish Financial Planning, Lancashire-based 1st Ethical and Sheffield-based Advanced Wealth Management.

It also includes Leicestershire-based compliance support firm Accord Consultancy Limited.

Earlier this month the FSCS announced that it would levy all financial firms a total of £363m for 2017-18, which includes management expenses of £69.2m.

According to the FSCS' latest forecast figures, the total levy against advisers on life and pensions, mortgages and investment, stands at £249m.

Investment intermediaries face paying £4m more than the FSCS forecast in January but the levy on life and pensions advisers remains unchanged at £100m.

Firms in default

London:

De Havilland Financial Management

KPM UK Taxis Plc

East:

Cavendish Financial Planning Limited, Essex

Midlands

Accord Consultancy Limited, Leicestershire

Financial Page Limited, Shropshire

West Midland Caravans Limited, Coventry

North West:

BAFS Limited, Cheshire

1st Ethical Limited, Lancashire

Henderson Carter Associates Limited, Merseyside

The Mortgage Point Limited, Manchester

Raintree Finance, West Yorkshire

Vanguard Wealth Management Limited, Leeds

North East:

Alan Hall, George Rainey and Robert Rhoades, Tyne and Wear

Advanced Wealth Management Limited, South Yorkshire

South West:

Ideal Financial Solutions, Dorset*

South East:

SFIA Limited, Buckinghamshire

Scotland:

Ardgowan Financial Services Limited, Ayrshire

Added Value Financial Services, Fife

Ireland:

Speers & Associates, County Down

*The inclusion of Ideal Financial Solutions in the list is the subject of a dispute with the FSCS

damian.fantato@ft.com

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