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23 November 2022 | Comment | Article by Ria Coleman

FSCS announcement expected regarding Northern Provident Investments Ltd


The Financial Services Compensation Scheme (‘FSCS’) recently reported that its investigation into Northern Provident Investments is at an advanced stage and that it expects to publish a further update shortly on whether it can accept claims.

The FSCS was set up to protect customers of financial services firms that have failed and will pay claims against firms in certain circumstances where the firm is unable to so.

On 20 August 2021, Northern Provident Investments Ltd (NPI) went into liquidation. The Financial Conduct Authority (FCA) subsequently compelled the company to refrain from approving any further financial promotions.

Between July 2015 and August 2021, NPI operated as a debt-based crowdfunding platform and were authorised by the FCA. They offered their customers the opportunity to buy illiquid debt securities and shares, often held in mini bonds.

These mini bonds were high risk propositions and illiquid meaning that those who purchased them as investments, may find it difficult to dispose of them or realise their investment.

It is known that some of the mini bond investments have now failed. There are also suggestions that in some cases, NPI failed to correctly handle client investments.

As part of their investigation, the FSCS is looking to establish whether there are valid claims against NPI. The FSCS says it is almost at the end of their investigations and should soon be able to confirm whether NPI investors have eligible claims.

If you invested into an investment promoted by NPI at any time after July 2015, you may be eligible to bring an FSCS claim.

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.

Author bio

Ria Coleman

Associate

Ria currently specialises in handling claims for financial mis-selling relating to pensions, mortgages and other financial products.

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