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December 11, 2023

FSCS places two advice firms under investigation

The Financial Services Compensation Scheme (FSCS) has placed two advice firms under investigation.

Inspirational Financial Management Ltd and Holborn Assets Ltd were both placed under investigation last week (December 4).

 

Holborn Assets Ltd

Holborn Assets Ltd, which has been authorised by the FCA since February 2015, entered administration on 24 October 2023.

According to reports the FSCS said it believes it is likely there will be a small amount of compensation claims from former clients for unsuitable advice.

 

Inspirational Financial Management Ltd

The other firm placed under investigation is Inspirational Financial Management Ltd, which entered administration on 30 November 2023.

According to the FSCS, Inspirational Financial Management Ltd is one of the firms associated with claims regarding the British Steel Pension Scheme (BSPS). As well as claims concerning defined benefit transfer advice related to other occupational pension schemes.

Inspirational Financial Management Ltd was taking part in the Financial Conduct Authority’s (FCA) redress scheme for BSPS members.

Firms were asked by the FCA to review the advice they gave and identify if it was unsuitable. If it was, firms were expected to calculate and pay redress to clients where the unsuitable advice caused a financial loss.

As Inspirational Financial Management Ltd has gone out of business, it won’t be able to continue to take part in the redress scheme.

Last month the FCA banned two individuals for ‘incompetent’ British Steel Pension advice and placed restrictions on another firm due to concerns over redress.

 

FSCS latest on Inspirational Financial Management Ltd and Holborn Assets Ltd

The FSCS says it is now considering claims against both Holborn Assets Ltd and Inspirational Financial Management Ltd. Each claim will be assessed on a case-by-case basis to establish if it is eligible for compensation.

As part of its investigations the FSCS will consider if both of these firms can meet claims made against them.

Important Information!

You are not required to use our services to pursue your claim. You can also seek further advice or shop around subject to any time limits within which a claim must be made.

It is possible for you to present the claim for free, either to the firm or person against whom you wish to complain or to the statutory ombudsman (Financial Ombudsman Service or Pension Ombudsman Service) or the Financial Services Compensation Scheme, whichever is applicable to your claim.