The Financial Services Compensation Scheme has paid out over £550,000 to date to investors affected by the collapse of Honister Capital.
The FSCS declared Honister Capital in default last month, including Burns Anderson, Sage and Honister Partners, part of the Honister Capital group. Claimants were asked to resubmit their claims following the default, including those who had previously had their claims rejected.
To date, the FSCS has received 300 claims against Burns Anderson, Sage and Honister Partners. Of these, there have been over 150 claims decisions with payouts totalling over £550,000.
Honister went into administration in July, leaving around 900 advisers unable to trade. The firm collapsed after it failed to secure professional indemnity insurance and was left with an uninsured £6m claim against Burns Anderson.
Administrators Grant Thornton have previously said that Honister appointed representatives recommended unregulated collective investment schemes to clients. Clients who believe they were missold have been told to contact the FSCS.
In October, Grant Thornton revealed there was a £4.6m shortfall between Honister’s assets and the money it owes to creditors. Among the creditors is software provider Intelliflo, which was owed over £1.1m in relation to an unexpired contract.
Page Russell director Tim Page says: “A payout of half a million pounds does not seem to reflect a collapse the size of Honister, but there may be more to come. The figures may also be flattered by capped liabilities from earlier on in the business’s history.”