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May 7, 2024

Seven firms failed with the FSCS in April

The Financial Services Compensation Scheme (FSCS) declared seven firms in default (failed) in April.

It also placed Kathryn Brown and KBFS Financial Ltd under investigation. Both firms are associated with claims regarding the British Steel Pension Scheme (BSPS). As well as claims about defined benefit transfer advice relating to other occupational pension schemes.

Firms that failed with the FSCS in April

Finsbury Financial Ltd, trading as Finsbury, was the first firm to be declared in default on April 9.  The FSCS confirmed it had received four claims against the firm relating to investment advice.

It rejected three of the claims but upheld one claim which has triggered the default declaration.

Oakwood Financial Management LLP and Go IFA Ltd both failed with the FSCS on April 12.

Thirteen claims had been made to the FSCS against Oakwood Financial Management, relating to various products, including pension and mortgage advice.

So far, the FSCS has rejected nine claims and upheld two.

Go IFA Ltd which was formerly known as Stevton Ltd and traded as Go IFAs, has had three complaints. These are to do with pension transfer advice and Self-Invest Personal Pensions (SIPPs).

WR Simon Ashley Silver Independent Financial Advisor Ltd was declared in default on April 12 after one of the 14 claims made against the firm was upheld by the FSCS.

PH7 Wealth Management Ltd formerly known as The Pension Place Ltd was also declared in default on April 12. The firm which also traded as PH7 Mortgages and PH7 Insurance Brokers had one complaint upheld in relation to SIPP advice.

Alexander David Securities Ltd (ADSL)

On April 30 Alexander David Securities Ltd (ADSL) was declared in default by the FSCS. It had been investigating the firm since July 2022 after it had entered creditors’ voluntary liquidation.

The FSCS has reportedly received 463 claims against Alexander David Securities Ltd relating to investment and pension advice.

So far the FSCS has upheld one claim and rejected 51.

What does it mean if a firm is in ‘default’ with the FSCS

If a regulated financial firm is no longer trading and cannot pay a customer’s claim, the FSCS can step in to pay compensation.

‘In default’ or failed is a term used by the FSCS when a firm or individual fails and can’t pay claims against it.

A declaration of default allows consumers who believe they’ve lost money, as a result of their dealings with a firm or individual, to apply to for compensation from the scheme.

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.