An advice firm that collapsed after a rogue adviser allegedly missold unregulated investments continues to see redress claims paid out by the Financial Services Compensation Scheme nearly two years after it was wound down.
Last month, Money Marketing wrote a cover story on the firm, Central Investment Services (Aberdeen), which was declared in default by the FSCS in 2015 after a former director of the company, John Moore, missold unregulated investments without authorisation, according to insolvency reports.
A November 2016 insolvency report noted that creditors were unlikely to get their money back as professional indemnity insurance was probably not pay out, the firm could not easily dispose of its shares in platform Nucleus.
A court decree for £225,000 was successfully obtained against Moore’s assets, but the insolvency practitioners said it was “unlikely any funds will be available for distribution to ordinary creditors”.
At the time, the FSCS had paid out just over £1m on 30 successful claims against the firm. (21 further claims had been rejected).
That figure has now risen to £1.4m, with 40 successful claims against the firm, according to the latest data obtained by Money Marketing.
The FSCS did not provide details on claims that had been rejected.
Central Investment Services (Scotland) continues to provide advice after it changed the name of its official corporate entity.