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FSCS declares six firms in default

The Financial Services Compensation Scheme declared six financial services firms in default last month, latest figures show.

Among them is Blackpool-based Omega Financial Services, which was told to cease all pensions and investment business by the FCA last month.

Devon firms Luddington Broze Limited, Leech & Burgess IFA LLP and Westbury Capital Partners Limited were also placed in default, along with Bradford-based Breterac Limited.

Cornwall mortgage adviser Premier Mortgage Centre rounded out the list.

Nine of the 11 firms declared in default by the FSCS in June were also financial advice firms, bringing the total number declared in default since May to 32.

The FSCS says that consumers could be in line for compensation as a result of their dealings with any of the six firms if they have lost money.

The lifeboat fund has paid out more than £26bn in compensation since 2001.

FSCS chief corporate affairs officer Alex Kuczynski says: “The FSCS steps in to protect consumers around the UK when authorised financial services firms go bust.

“We want anyone who believes they may be owed money as a result of their dealings with any of these firms to get in touch as we may be able to help you.”

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  1. How many of these defaults are the result of long-running nefarious activities of which the FCA should have been aware and acted upon?

    That aside, it’s not quite accurate for a spokesman from the FSCS to claim that it “steps in” to protect consumers around the UK when authorised financial services firms go bust. This sort of paints the FSCS as some sort of bottomless benevolent fund. Rather, it forces the adviser community to pay, most of whom are entirely innocent and who’ve never ripped off anyone in their lives.

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