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FSCS declares latest 21 firms in default

FSCS Interior 480

The Financial Services Compensation Scheme has declared 21 firms in default, including adviser firms, and has already begun to pay compensation to affected clients.

The FSCS has published a list of firms it has recently declared in default. Where firms are in default the FSCS has received at least one claim, and is satisfied the firm is unable or likely to be unable to pay eligible claimants.

Among the firms listed is IFA firm SD Asset Management, which was declared in default on 22 June. SD Asset Management managing director Stephen Danner set up Cru Investment Management with Jon Maguire in 2005, which promoted Arch cru funds.

The suspension of the Arch cru fund range in March 2009 saw the FSA agree a £54m payment scheme between Capita, BNY Mellon and HSBC in June 2011 and propose a £110m consumer redress scheme to be paid for by advisers that recommended Arch cru.

Consumers may be entitled up to £50,000 if they have lost money as a result of their dealings with the firms declared in default.

FSCS head of communications Mark Oakes says: “We have already started paying compensation in respect of these firms.

“However, we are encouraging anyone else who believes they may be owed money through their dealing one of these firms to contact our initial contact team if they have not yet applied for compensation.”

The firms that have been declared in default are:

  • Anson Bailey
  • GKS Pensions & Investments
  • Porchester Finance
  • Sterling McCall Asset Management
  • Genius Financial Management
  • P Arnold (deceased) t/a PJ Arnold
  • Conforto Financial Management
  • Temple Property Consultants
  • Davis Druckman Financial Services
  • Fidelity Consultants
  • Global Finance Services
  • Gracechurch Investments
  • Russell Westgate Securities
  • Shakespeare Finance
  • Trevor Hubbard
  • Courts Independent Financial Management
  • SD Asset Management
  • Binary Independent Financial Advisors
  • Intelligent Move
  • Westwood/ Westwood Independent Financial Advisers
  • Murtagh Baille Financial Services formerly Urwin Baille Financial Services

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Comments

There are 4 comments at the moment, we would love to hear your opinion too.

  1. Just wait until the Key Data saga pans out – the list will be considerably longer.

    One could almost imagine that their purpose is to engender more defaults in order to stay in business.

  2. How many owners / principles of these businesses have just set up a new company, transferred their clients and trail and walked away.

    FSA need to ensure that liabilities follow business owners and advisers, or they should refuse to re-authorise them.

    Only then will the business owners take responsibility for their and their adviser’s actions and stop these misselling scandals.

  3. @ A Nony Mouse
    I partially agree with you but to do this would mean yet another area of business life where IFA’s have lesser rights than others.

    The limited company structure means limited liability. It’s a good legal structure – lets not encourage the regulatory lunatics to meddle with it.

    It’s the FSCS and the FSA that have got the advice liability and system completely wrong.

  4. How is the FSCS allowed to do this when the FSAs (own) investigation into the causes of KIS Ltd’s collapse have not yet been completed or published. ?

    As for liabities for the collapse of this firm, the FSA authorised the firm and its products so really the FSA should have been declared in default of its statutory obligations to protect the interests of consumers etc etc etc.

    I wish !

    That will never happen, because as HS put it to the TSC, the FSA has no accountability.

    What a mess this industry is in and now we have CMCs ripping off clients pensions I read in the Mail today.

    UNBELIEVABLE !!!

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