Consumer champion The Financial Services Compensation Scheme (FSCS) has named and shamed 16 financial advice firms to clear the way for investors to claim compensation.
Under FSCS rules, firms in default do not have the resources to settle any financial claims from customers, so the FSCS steps in to pay out compensation.
The maximum investment claim is £50,000 for each investor for each firm – although other limits apply to other financial products.
Many of the firms listed have seen their directors fined by the Financial Conduct Authority over misconduct, including Coull Money, which was involved with the Arch Cru investment debacle, and Clark Rees, whose directors were fined over unregulated collective investment schemes (UCIS) sales.
Coull Money director Joe Egerton backed a failed judicial review into the regulator’s £54 million Arch Cru redress package for investors.
Firms in default
The compensation was ‘inadequate’ according to Egerton, but his claims were thrown out by the High Court in January 2012.
The advice firms in default include:
- ACG Financial Management
- Philip M. Derbyshire & Company
- Transglobe Independent Financial Advisors
- Cornovii Investment Management
- David James Financial Services
- Coull Money
- Peter G Bodington & Associates
- Independent Mutual
- 141107 Limited, formerly GD Tancred Financial Services
- Green Denman & Company
- Helmlake Financial Services
- Meads Financial Consultants (Eastbourne)
- Opulen Management
- Stirling Associates (Cheltenham) Limited
- G Fleming, C Morrison & J Ferris
- Clark Rees
Two firms in default, Stirling Associates and fund group Stirling Mortimer appear connected as both companies share the same director, Timothy Clink, and the same address in Cheltenham.
The FSCS’s Mark Oakes said: “The FSCS was formed to safeguard consumers when authorised financial services firms go bust. It protects deposits, investments, home finance and insurance. If anyone believes that they may be owed money as a result of their dealings with any of these firms, get in touch with FSCS, as we may be able to help you.”
Dealing with an unregulated firm
If you buy shares, save money or invest with an unregulated firm, you lose any protection offered by the Financial Ombudsman and the Financial Services Compensation Scheme. Broadly, you have no independent place to complain if the deal goes wrong and are unlikely to win any compensation.
Checking if a firm is regulated
Go to the Financial Services Register to check if a firm is regulated in the UK.
Reporting a suspected bogus adviser
Find out how to report unauthorised advisers on the FCA web site
