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FSCS declares 25 firms in default

FSCS-Piggy-Bank-500x320.jpgThe Financial Services Compensation Scheme declared 25 firms in default in August and September, including advice firm SK8 Financial Services whose sole director was jailed for fraud in 2014.

Geoffrey Fincher, the former sole director of Cheshire-based advice firm SK8, was sentenced to two years in prison in November 2014 for duping clients out of almost £200,000. He had pleaded guilty to 22 offences relating to theft and fraud.

The latest data from the FSCS shows a total of eight life and pensions firms and 14 investment firms were declared in default between 1 August and 30 September 2016.

As well as SK8, the life and pensions firms declared in default include Essex-based DB Financial Advice, Manchester-based Archer Wealth Managemen, and Leicestershire-based Cedar Lawns Associates.

Among the investment firms declared in default are Duke Street Advisers from London, Leslie & Nuding from Kent, and Acorn Corporate Finance from Cheshire.

Collapsed network Financial Limited, which was acquired by Tavistock in January 2015, was also included in the list. The network was banned from recruiting appointed representatives in July 2014 after the FCA found “systemic weaknesses” in the company’s systems and controls.

Tavistock’s 2015 annual results confirmed it would close Financial Limited and open a new network called Tavistock Financial.

Financial Limited’s liquidation documents revealed that the network was facing at least £90,000 in potential Financial Services Compensation Scheme (FSCS) claims, claims which have now been opened to the lifeboat fund.

FSCS communications head Mark Oakes says: “Our message to anyone who believes that they may be owed money as a result of their dealings with any of these firms is please get in touch as we may be able to help you.”

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  1. That’ll be another 25 lots of liabilities which will be added to the next round of levies imposed on the rest of us. How many of them might have been avoided or at least minimised if the FSA/FCA had properly and effectively focussed its attention earlier on what these firms were up to? Or if its GABRIEL returns were worth a light?

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