The administrators of a collapsed wealth management firm are still in talks with the Financial Ombudsman Service over how 24 complaints will be handled.
Full Circle Asset Management went into administration last year after losing a court case brought by a client.
According to an update from the administrators there are 24 pending claims registered with the Financial Ombudsman Service.
A statement from the administrators said: "The company, supported by its insurers, have defended their position in relation to these claims to date.
"For the purpose of the estimated outcome statement, the administrators have estimated a level of liability on a prudent basis, however there is a considerable level of uncertainty in relation to this figure as a number of factors could influence it, including the adjudication of the complaints, the level of insurance coverage and aggregation issues.
"The manner in which these claims will be handled and adjudicated in the context of the administration has not yet been determined and we are liaising with Fos, FSCS, insurers and legal advisers in this regard."
The claims registered with the Fos are listed as one of the firm's liabilities.
Another of the liabilities is an estimated £1.1m owed to David Rocker, a client of Full Circle who took the company to court after his £1.5m investment fell by more than 50 per cent, alleging the losses were caused by the firm's breaches of the contractual terms over how it managed his money.
A judge ruled Full Circle had deviated from the risk profile and failed to sell poorly performing assets.
The administrators have said they are in the process of marketing the business in order to sell it and pay off its liabilities, and are currently in discussions with "a number of third parties".
Full Circle also has liabilities of £21,840 to HM Revenue & Customs as well as £97,961 to 16 trade and expense creditors.
A spokesman for the Financial Ombudsman Service said: "Full Circle Asset Management went into administration at the end of last year.
"If we’re aware that a business can’t pay redress – for example they’re insolvent – then we’ll liaise with the FSCS to see if they’ll be taking on these complaints but this can take some time. And we’ll need the consumer’s permission to transfer their complaint over."
damian.fantato@ft.com
