Financial Services Compensation Scheme  

FSCS declares 7 advice firms in default

FSCS declares 7 advice firms in default

The Financial Services Compensation Scheme has declared seven advice firms in default over August and September, which together have caused 78 claims to date. 

In an update published yesterday (October 19), the FSCS confirmed 12 firms in total had defaulted with the lifeboat body in the two months, of which seven were financial advice firms. 

IFA CFP Management Ltd sparked 44 claims to date around personal pension transfers. Of these, 22 were unsuccessful and 18 are in progress.

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Thomson Brown Financial Management Ltd, trading as Audley Asset Management, is an IFA that has accumulated 24 claims, of which 14 remain in progress. 

Of the claims, four were unsuccessful and the claims covered personal pension transfer and self-invested personal pensions.

Advicelite Ltd, trading as Investorlite, Isalite, Pension & Investor Lite, received five claims on personal pension transfers, of which three were unsuccessful and one is in progress.

BPI 55 Ltd, formerly Broadstone Pensions & Investments Ltd and BDO Investment Management Ltd received two claims, of which one was unsuccessful. The claims were around mortgage endowments.

Meanwhile, both Coniston Wealth Management Ltd, trading as Lighthouse Ltd and IFA J.S. Financial Advice Service Ltd, both received one claim covering Sipps.

IFA Rock Financial Consultants 2002 Ltd also had one claim which covered a pension transfer.

Sarah Marin, chief customer officer at FSCS, said:"FSCS is here to contribute to financial stability in the UK. FSCS protection increases consumer confidence when buying financial products and services, and our compensation helps put customers back on track should financial firms fail.

"Compensation may be available if people have suffered losses due to the failure of a financial services firm."

The FSCS had declared seven advice firms in default in June and July, which at the time had caused 36 claims to be brought to the service.

Last year, the FSCS declared 45 firms in default, including 30 advice firms.

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