The FSCS has received more than 30 claims against collapsed advice firm Active Wealth just two-and-a-half weeks after opening the doors to compensation against the company.
Active Wealth went into liquidation on 12 February after attracting attention for its role in advising members to transfer out of their final salary schemes at British Steel.
The firm was declared in default by the FSCS on 26 March. While no compensation payments have been made to date, 34 claims are already in process and are being evaluated by the FSCS.
Midlands-based Active Wealth is one of 10 advice firms that has stopped giving pension transfer recommendations in light of the British Steel pension saga.
Law firm Clarke Willmott partner Philippa Hann says: “I anticipate the FSCS will receive a lot more claims.”
“I am being instructed by a number of people who transferred out of British Steel Pension Scheme and other final salary schemes on the advice of Active Wealth.
“They are instructing me to seek other ways options of redress from those involved in the transfer process and investment of their money.
“These other entities include a discretionary investment manager, an algorithmic trading company, a fund manager and the introducer Celtic Wealth Management.”
The other nine advice firms to have cease transfer advice are Vintage Investment Services, Retirement & Pension Planning Services, West Wales Financial Services, Pembrokeshire Mortgage Centre, Mansion Park, Bartholomew Hawkins, Inspirational Financial Management, County Capital Wealth Management and Acklam Financial.