View more on these topics

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.”



FSCS chief: Scrapping £50k payout limit will help advisers

Financial Services Compensation Scheme chief executive Mark Neale says removing the £50,000 compensation limit for poor advice could encourage more consumers to use advisers. In a blog last month, Neale argued that protection for bad advice needed to be harmonised with retirement savings held in insurance products to give consumers more confidence in the system. There […]


Calls for providers to fund FSCS as review continues

Simplybiz Group chairman Ken Davy has said product providers should be the primary funding source for the Financial Services Compensation Scheme in the event a product levy is definitely ruled out. In a paper sent to the FCA’s FSCS review team, Davy outlines why he thinks the current FSCS funding model is flawed. The Financial Advice Market Review […]

Andrew Tyrie Tory conf 2013.jpg

Tyrie pushes FCA on FSCS funding review

Treasury committee chair Andrew Tyrie has reprimanded FCA chief executive Andrew Bailey for failing to give an update on the Financial Services Compensation Scheme funding review. In a letter dated 9 September, Tyrie asks what the scope of the review is and when it will be completed. He says: “Last October the committee took evidence […]

Harris Associates' view on the UK’s vote to leave the EU

By David Herro, Partner, Deputy Chairman, Portfolio Manager and Chief Investment Officer of International Equity at Harris Associates Britain’s vote to exit the European Union has led to significant uncertainty across global markets. We believe market impact of this uncertainty, though severe, is more of a shorter-term phenomenon which will provide an opportunity for long-term […]


News and expert analysis straight to your inbox

Sign up


There is one comment at the moment, we would love to hear your opinion too.

  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?

Leave a comment


Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm