An adviser who was sued by former footballer Alan Shearer has also seen £3m in Financial Services Compensation Scheme payouts to its clients, it has emerged.
Kevin Neal Associates, the firm ran by adviser Kevin Neal, was declared in default last February.
Former England and Newcastle United star Shearer launched a £9m lawsuit against Neal, claiming his advice was “dishonest” and “careless”.
The pair reached an out-of-court settlement last month for an undisclosed sum.
It has now emerged that at least £3m in compensation payments have been paid out to former Kevin Neal Associates clients by the FSCS since the firm folded.
According to data obtained from the FSCS, there have been 40 claims upheld against the firm to date. While half concerned investment bonds, nine involved Sipp advice and another six surrounded unregulated collective schemes.
14 further claims are in progress, another two of which include Sipps and UCIS respectively, while two small-self-administered scheme advice claims are also part of the tally.
20 claims have been rejected.
Shearer was also taking legal action against Suffolk Life claiming that the provider had failed to exercise its required duties under regulation.
In a statement to Money Marketing at the time of the settlement, Suffolk life said Shearer’s case against it had been “settled on mutually satisfactory terms and with no admission of liability.”