Within the last fortnight a total of 25 financial firms have been declared by the Financial Services Compensation Scheme as being in ‘default’. This means that the firms are unable to pay claims for compensation which are brought against it.
The list of names includes Financial Planning & Investment Limited based in Worcestershire, Arjent based in London, Investment & Pension Management Ltd t/a IPM based in Manchester and Bank House Investment Management Limited based in Gloucestershire.
Most notable is Financial Planning & Investment Limited (FPI) who breached an agreement reached with the Financial Conduct Authority to stop advising on pension transfers.
It is reported that the Financial Conduct Authority had been concerned with the advice FPI were providing to consumers after visiting the firm in 2015. Despite reaching agreement thereafter, that they would not advise on any more pension transfers, the firm advised a further 72 customers before being told by the Financial Conduct Authority to cease all regulated activity.
If you believe you may have been negligently advised by a financial firm that is now in ‘default’, it may still be possible to claim compensation.