Administrator Ernst & Young has confirmed Bates was placed into administration on June 17, along with parent company The Money Portal Limited, after being unable to meet debt obligations.
TMP assets, including Burns Anderson, Sage Financial and Willis Owen, have been sold to Honister Capital while the principal assets of Bates have been sold to HC subsidiary Honister Partners.
The FSCS says it would pay compensation for claims where a firm has been placed in administration, although it would attempt to recover some costs if assets are sold.
Burns Anderson, Sage Financial and Willis Owen have been transferred as going concerns, so any claims for these firms would fall on Honister Capital.
Informed Choice joint managing director Martin Bamford says: “This sort of behaviour puts unnecessary and intolerable pressure on those IFAs who do the right thing.”
Towergate Financial Services went into administration rec- ently with its adviser firms bought by Towergate Underwriting.Towergate says it will cover any liabilities arising from TFS.