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August 25, 2023

LEBC Group enters administration as FSCS investigates claims

Financial advice firm LEBC Group Ltd has entered administration after announcing the sale of its assets to sister company Aspira.

Aspira confirmed on 9 August 2023 that the asset transfer, which includes LEBC Group’s client book and staff, had been agreed with the Financial Conduct Authority.

The announcement by Aspira said that, with immediate effect, LEBC’s business will transfer and become part of Aspira. And LEBC will be ‘wound up in an orderly fashion in due course.’

Daniel Conway and David Hudson of FRP Advisory Trading Ltd have been appointed as joint administrators.

According to reports this move came after an ‘extensive consultation’ which also has the ‘full support’ of B.P. Marsh, the major shareholder of LEBC Holdings Limited.

LEBC Holdings Limited is the parent company to both Aspira and LEBC Group Ltd.

FSCS currently investigating LEBC claims

The latest update from the FSCS says that it is currently investigating LEBC and considering claims on a case-by-case basis.

This is to determine if the claims are eligible for compensation under its rules.

According to the FSCS website LEBC Group Ltd advised some customers to transfer out of Defined Benefit Pension Schemes and it says some of this advice may not have been suitable for some clients.

There have been several complaint decisions upheld by the Financial Ombudsman Service (FOS) involving LEBC Group Ltd. The most recent of which relates to unsuitable pension transfer advice.

And according to reports this week LEBC Group Ltd had potential redress liabilities of more than £6m prior to the firm being sold in a pre-packaged administration sale.

The administrator’s report, published on Companies House, revealed that LEBC Group Ltd was facing redress claims from ‘historic systemic failings in the advice process in relation to the company’s past book of DB (defined benefit) pension scheme transfer advice.’

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