Financial Services Compensation Scheme  

Cardiff IFA among firms declared in default

Cardiff IFA among firms declared in default

The Financial Services Compensation Scheme has placed 12 firms in default, including a financial advice firm which didn't pay money it owed the Financial Conduct Authority.

Cardiff-based Park Grove Financial Management had its permissions cancelled after failing to pay the £5,722 it owed the regulator in fees and levies.

The company failed to pay this overdue balance and the FCA concluded Park Grove was not “fit and proper” as a result of the fact it did not cough up the cash.

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Another firm placed in default was Cardiff-based fund management company Cumulus Investment Management, which was told to cease all regulated activity by the FCA.

In the first four months of 2017 there were 12 complaints upheld by the Financial Ombudsman Service against Cumulus, all involving a Ukrainian property fund.

Several other financial advice firms have also been declared in default, including Northern Ireland-based M&P Financial Planning, Newport-based Available Mortgages and Kent-based Aspen Financial Planning.

Mark Oakes, head of communications at the FSCS, said: "The FSCS steps in to protect consumers around the UK when authorised financial services firms go bust.

"This vital and free service protects your deposits, investments, home finance and insurance. We want anyone who believes they may be owed money as a result of their dealings with any of these firms to get in touch as we may be able to help you."

A declaration of default means the FSCS is satisfied a firm is unable to pay claims for compensation made against it.

This paves the way for customers of that firm to make a claim for compensation.

Since it began in 2001, the FSCS has helped more than 4.5 million people, paying out more than £26bn in compensation.