Financial Services Compensation Scheme  

FSCS receives claims against failed adviser

FSCS receives claims against failed adviser

Advice firm Optimus Wealth Management has gone into liquidation paving the way for clients to make claims against it.

According to the Financial Services Compensation Scheme, the advice firm entered liquidation last week (December 17).

This means the lifeboat scheme can now begin accepting claims against the adviser and has so far received three.

According to the FCA register, Optimus Wealth Management has not been authorised since May 2016 and as such is no longer able to provide regulated products or services.

The FSCS is unable to pay out on any claims until the firm goes into default and at least one eligible claim is found.

Eligible clients can bring claims to the FSCS for a maximum payout of £85,000.

Last month (November 25), the FSCS was forced to raise a £92m supplementary levy following an increase in pension advice claims and other high profile firm failures.

The lifeboat scheme said £8m would be raised from the life distribution and investment intermediation class, as it had reached the maximum level it can charge this class in a year.

Surpluses across other classes will contribute £33m and the scheme will also raise an additional £51m from the other classes, including those in the retail pool. 

The lifeboat scheme will confirm any additional levies along with its forecast 2021/22 annual levy figures in its plan and budget, which will be published in January.

Over a number of years, the FSCS has seen more firms failing, which has contributed towards the rising levy. 

This year, alongside failures such as Greyfriars Asset Management and Pointon York, the lifeboat scheme has seen more compensation pay-outs to customers resulting from the failure of London Capital & Finance (LCF). 

There has also been an increase in pension advice claims and additional costs in relation to the transfer of cash and assets from investment firms, including Reyker Securities.

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