The Financial Services Compensation Scheme (FSCS) has declared 14 firms in default in January and February 2021, including nine advice firms. The FSCS is the financial sector’s fund of last resort for obtaining compensation following negligent advice from a firm that can no longer satisfy claims brought against it.
One of the advice firms that caught the FSCS’ attention over its pension advice was Pembrokeshire Mortgage Centre, a firm that was forced to give up its transfer permissions in the wake of the British Steel pension scandal. The firm, which traded as County Financial Consultants, was placed in default on 14 January 2021 and subsequently the FSCS has received 35 claims against it.
Additionally, by January the FSCS had received 149 claims against Manchester-based Copia Wealth Management relating to SIPPs, investment bonds, investment portfolios, private pension transfers and other pension advice. Copia had also been found by the Financial Ombudsman Service to have incorrectly assessed its clients’ attitudes towards high-risk investments when deciding to go ahead with defined benefit transfers.
Also appearing on the list was SIPP provider Liberty SIPP, which was placed in default on 25 January 2021. The FSCS has so far paid out more than £5.8m in compensation on 187 claims against this firm, having received 1,860 claims.
The full list of advice firms most recently placed into default is listed below:
- Inspired Wealth Limited
- Copia Wealth Management Limited
- Grosvenor Financial Consultants Limited
- Pembrokeshire Mortgage Centre Limited
- RHT Financial Services Limited
- Gardner Massey Wright IFA Limited
- Sequence Financial Management Limited
- Sterling Pension Management Limited
- John Coldwell Pensions & Investments Limited
If you have had any past dealings with any of the above firms, then you could be entitled to obtain compensation by claiming through the FSCS scheme. Our experts have dealt with hundreds of FSCS claims and can guide you through the process on a ‘no win, no fee’ basis.