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8 February 2022 | Comment | Article by Neil Stockdale

Financial Services Compensation Scheme has declared three advice firms in default

The Financial Services Compensation Scheme (FSCS) has declared three advice firms in default, allowing claims to be brought to the lifeboat scheme.

A declaration of default is made when the FSCS is satisfied that a firm cannot meet any eligible claims made against it.

The lifeboat scheme is funded by the financial services industry. If a firm fails and cannot pay customers’ claims, they can seek compensation from the fund.

According to the FSCS, the lifeboat scheme has received claims against Spires Independent, Armstrong Campbell and Broadlands Partnership.

It is not yet known how much the FSCS is expecting to pay out on these claims.

According to the Financial Conduct Authority (FCA) register, Spires Independent, based in Birmingham, entered liquidation in August 2021; Armstrong Campbell, based in Newcastle Upon Tyne, is no longer authorised and Broadlands Partnership, based in Cardiff, applied to cancel its authorisation in November 2020.

In December 2021, the FSCS declared 16 firms in default in October and November. The FSCS had previously declared 12 firms in default in August and September.

In 2020, the FSCS declared 45 firms in default, including 30 advice firms.

During the 2020/2021 financial year, more than 52,000 customers were paid compensation or transferred to a new provider for their investment or insurance policy by the FSCS.

If you were a customer of Spires Independent, Armstrong Campbell or Broadlands Partnership and are concerned about advice you received, then please contact us for a free initial consultation.

Speak to our specialist Financial Mis-Selling Team today to find out how we can help. We offer ‘no win, no fee’ funding on approved cases.

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Author bio

Neil is an elected partner on the firm’s board of management. He is also head of the firm’s financial mis-selling team, specialising in handling claims for financial mis-selling relating to pension mis-selling, timeshare purchase, annuities, mortgages and insurance.
Neil Stockdale

Neil Stockdale

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Disclaimer: The information on the Hugh James website is for general information only and reflects the position at the date of publication. It does not constitute legal advice and should not be treated as such. If you would like to ensure the commentary reflects current legislation, case law or best practice, please contact the blog author.

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