FSCS gets 24 claims against Ucis firm fighting ban
The Financial Services Compensation Scheme has received 24 claims against an adviser firm which is appealing against an FSA ban over the misselling of unregulated collective investment schemes.
In a decision notice issued in November, the FSA is seeking to ban Bath IFA Pave Financial Management and its directors Timothy Pattison and Stephen Hocking over the investment of £9.7m in Ucis.
The FSA also wants to fine Pattison £90,000. Pave, Pattison and Hocking have referred the matter to the Upper Tribunal and a hearing date has not yet been scheduled.
The FSCS claims relate to investments in illiquid property funds and Arch cru. It has not yet declared the firm in default.
An FSCS spokesman says: “Establishing the eligibility of the claims could be difficult as a number relate to Arch cru funds or illiquid property fund claims, where we will have to value the fund for compensation purposes. Both of these could take time.”
The FSA says 65 of Pave’s 200 clients were advised to invest up to 80 per cent of their investment portfolio in Ucis. Others were advised to switch existing pensions into Sipps, where the underlying investments included a high concentrations of Ucis.
Attain Wealth Management managing director Gordon Crothers says: “There are advisers that just see the headline rates of return on Ucis.”