A discretionary fund manager that lost a High Court appeal to judicially review a Financial Ombudsman Service decision against it has now been declared in default.
Full Circle Asset Management was one of eight firms declared in default by the Financial Services Compensation Scheme in April.
The FOS decision centred on a client who invested £450,000 with Full Circle after completing an attitude to risk and loss document which recorded her as a medium-risk investor.
However, King ended up losing £90,000 in her first 15 months with the firm.
The ombudsman decided the proportion of risky investments was excessive, hedging was insufficient, the portfolio was not set up to produce the kind of income the client had asked for, and that information given to her had been too technical for her to understand.
The FOS decided the client was entitled to compensation up to the £100,000 limit for investments, and that the amount of redress should depend on the difference between performance with Full Circle and the FTSE WMA Stock Market Income Total Return Index.
The High Court later upheld the FOS’s decision against a judicial review challenge from Full Circle.
Also declared in default are Bromsgrove-based Intelligent Financial Planning, Welsh firms Strategic Wealth UK and Bright Financial Partnership.