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FSCS default list published as British Steel IFA and ‘fraudulent’ DFM in spotlight

The Financial Services Compensation Scheme has released the full list of firms it declared in default in March, including an advice firm facing allegations of unsuitable British Steel pension transfers and a discretionary fund manager being investigated by US authorities.

Active Wealth and Beaufort Securities are two of 11 financial firms on the FSCS’ list. Once the FSCS declares a firm in default, it can then begin to process claims against them.

Last week, Money Marketing revealed that Active Wealth had already received at least 30 FSCS claims against it.

Active Wealth director Darren Reynolds was asked to appear before MPs on the work and pension select committee in February to justify the advice process behind the nearly 300 British Steel Pension Scheme clients the firm saw and the firm’s links to unregulated introducer firm Celtic Wealth.

London-based Beaufort Securities, meanwhile, allegedly sent a letter last year to clients suggesting they could claim compensation against their financial advisers who “may not have fully informed you of the risks and suitability” of using the DFM.

The FCA revealed last month that a coordinated investigation with US authorities has contributed to a court order it levied on the firm to wind down.

An indictment by US prosecutors alleges that Beaufort “engaged in an elaborate multi-year scheme to defraud the investing public of millions of dollars through deceit and manipulative stock trading, and then worked to launder the fraudulent proceeds through off-shore bank accounts and the art world”.

FSCS director of corporate affairs Alex Kuczynski says: “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. FSCS director of corporate affairs Alex Kuczynski says: “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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