View more on these topics

Mortgage Advisory Centre faces receivers

Scottish mortgage and insurance broker, the Mortgage Advisory Centre, faces liquidation as a result of endowment claims.

Director Robert McGrail, who has a 10 per cent stake in Heart of Midlothian Football Club, had set aside a compensation pot of an undisclosed sum to deal with claims.

But liquidator KPMG says it appears this may not be enough to meet 688 claims that are being processed.

More claims are expected to flood in as liquidator KPMG contacts clients of the Edinburgh firm. KPMG Scotland partner Brian Nimmo is liaising with the Financial Services Compensation Scheme and the FSA, which has already posted a warning on the consumer section of its website.

MAC made a loss of around 200,000 in 2004 after almost 20 years in the mortgage business. It stopped selling new policies in 2002 and was only dealing with existing clients.

McGrail is understood to own between 24 and 27 companies, the best known being First Mortgage, an independent mortgage advisory firm with seven outlets in Scotland.

Nimmo says: “We are liaising with the FSCS to determine what protection may be available for existing and future claimants. Our job is to ensure this company is wound up efficiently and effectively while trying to realise maximum value for creditors.”

The Mortgage Advisory Centre was unavailable for comment.

Recommended

Keydata bond takes 4m in three days

Keydatas secure income bond achieved sales of 4m within three days of launch last week – the highest uptake of any of its products. It invests in corporate protection insurance policies and aims to pay 7.5 per cent annual income over five years. It is designed to appeal to income investors who are put off […]

Aifa warning of Mifid chaos

The European Union’s controversial markets in financial instruments directive could cause major confusion in the investment advice market and bog IFAs down in yet more costly regulation, warns Aifa deputy director general Fay Goddard.Aifa says IFAs holding client money, up to 10 per cent of IFAs, are expected to be hit by major changes when […]

FSCS sets out bond misselling figures

Defunct companies Berry Birch & Noble Financial Services, David Aaron Partnership and RJ Temple lost most claims for precipice bond misselling, according to figures from the Financial Services Compensation Scheme.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment