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FSCS accepting claims against Kent-based network

The Financial Services Compensation Scheme is accepting claims against Kent-based network Virtual Net Europe, Money Marketing understands.

In June 2013, Money Marketing reported the network had been unable to secure professional indemnity insurance, raising concerns about its future.

It is understood the network ceased trading in December before transferring a number of members to VN Direct, a support services offering for directly authorised advisers.

According to the FCA register, Virtual Net Europe has applied to cancel its authorisation and has seven member firms. When a firm applies to cancel its permissions, the regulator must first establish whether any liabilities are due.

Money Marketing understands the FSCS is now accepting claims against Virtual Net Europe while a number of former members say they are owed thousands of pounds by the network.

The business made a loss of £1.6m in the 12 months to 31 March 2013, according to the latest accounts filed with Companies House. 

This followed a £182,532 loss in 2011/12.

One former member, who wished to remain anonymous, says: “I am owed £1,000 in proc fees and unpaid commission from the past few months alone.

“I have asked for commission statements but they have not responded. We cannot get any answers about what has happened or exactly what we are owed. They are just not responding.”

Another member says: “I am owed several thousand pounds in unpaid commission.

“Since leaving I have not been able to access any of the systems, including commission statements, which has been incredibly frustrating.”

Virtual Net Europe could not be reached for comment. The FSCS says it is aware of the firm and is carrying out an investigation.

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