Clients who received the Financial Services Compensation Scheme’s maximum compensation amount after being defrauded by Norwich-based IFA Taylor and Taylor may receive further payouts.
In an update on the case today, the FSCS said those with losses that exceeded the amount police were able to retrieve from the firm could still approach it to cover additional compensation claims.
Suffolk Police contacted clients last month after securing a confiscation order to claw back ill-gotten funds from the firm, with the FSCS set to distribute the money on top of its own regular payouts.
Alan and Russell Taylor who ran the now-defunct advice firm were sentenced to six and five years in prison respectively in May after pleading guilty to conspiracy to defraud.
The investigation into Taylor and Taylor and investment manager Vantage Investment Group, in which both brothers were directors and shareholders, has been ongoing since 2015. The Taylors were accused of misappropriating advised client money into their own investment vehicle.
Almost £5m in claims has been paid out by the FSCS so far, with more than 200 investors and £17m in client funds affected.
For people who are yet to make claims, the FSCS says those who have not yet taken action are still eligible for both payouts.
It says in a statement: “We would encourage you to contact us as soon as possible so we can consider your claim. If you receive any money from the confiscation order before you contact us, we’d still invite you to make a claim with us if the money you’ve received from the order does not fully cover your losses.”
The maximum FSCS compensation limit for investment advice claims was recently raised from £50,000 to £85,000.
Other claims, for example against insurance-backed products like annuities, are covered at 100 per cent of the product’s value.