Eighteen investors are looking to pursue an advice firm through the Financial Ombudsman Service and other legal avenues after being advised to invest a total of £30m in film, property and carbon dating Ucis funds.
Claims management firm Rebus Investment Solutions is representing the investors and says it expects the unsuitable advice claims against advice firm Omni Executive Group to rise to up to £40m over the next couple of weeks as more investors come to the firm with claims.
Rebus was originally pursuing Omni for £1m in relation to fees paid for investing in film schemes including one claim which has already been upheld by the FOS.
The FOS judgment highlights a lack of clarity over the fact that £6,500 of the £10,000 fee went to Omni, with the rest going to the Eclipse film scheme. It ordered Omni to pay back the £6,500 annual difference along with an additional 8 per cent per annum.
Omni sent a letter to the FOS earlier this month saying it was insolvent and could not pay the claim. According to the FCA register, the firm has not been authorised since 31 July.
Rebus is disputing Omni’s insolvency claims and says it will look to take action against the directors of the firm personally if necessary.
Rebus head of client relations Martin Taylor says: “We are currently pursuing Omnis over the suitability of advice given to invest in these Ucis funds and have had a number of clients come to us with claims. We expect this number to rise even further in the coming weeks.”
Omni was unavailable for comment.