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