The Financial Services Compensation Scheme has published details of financial firms which have recently failed or are ‘under investigation’.
What is the FSCS?
The Financial Services Compensation Scheme (FSCS) was established in 2001 by the government as a safety net to protect customers following the failure of regulated financial services firms.
When firms that are regulated by City watchdog, the Financial Conduct Authority (FCA) fail, they cannot honour any claims made against them due to financial insolvency. The FSCS, funded by levies from the financial services industry, has a pot of money to provide compensation to customers who would otherwise be left out of pocket. Currently, the upper limit for claims made against firms that failed after 1st April 2019, is £85,000 (£170,000 for joint accounts).
Failed Financial Services Firms
Following our last update, here are some of the latest financial firms to have failed in the UK in recent months and highlighted by the FSCS:
Holistic Pension Transfer Specialists Ltd, trading as HPTS – failed 3rd July 2024 – a firm specialising in Defined Benefit Pension Transfers.
J Monroe Ltd, trading as Compendium Wealth, Summit Wealth Management – failed 4th July 2024 – the firm advised on pensions.
Donre Advisory Ltd, previously Basi & Basi Financial Planning Ltd – under investigation 16th July 2024 – the firm provided investment and pension advice, but went into liquidation on 11th July 2024. The FSCS are accepting claims against the firm.
London Court Ltd – under investigation 22nd July 2024 – the firm provided bond administration and ISA management services. Liquidators were appointed on 15th July 2024, and the FSCS is open to claims from customers.
Lonsdale Insurance Brokers Ltd – under investigation 24th July 2024 – the firm is a small, independent broker for Lloyd’s bank. Liquidators were appointed on 24th July 2024, who will work alongside the FSCS to understand potential claims against the firm. Further updates will be posted on the FSCS website in due course.
Great Point Investment Ltd – under investigation 5th August 2024 – the firm entered voluntary liquidation on 30th July 2024 and the FSCS is now open to claims relating to Enterprise Investment Schemes, Seed Enterprise Investment Schemes and Estate Planning.
Green Gen Financial Ltd – failed 12th August 2024 – an investment advice firm, linked to the British Steel Pension Scheme scandal. Pension transfer claims can be made to the FSCS.
Central Markets Investment Management Ltd – under investigation 14th August 2024 – the firm entered liquidation on 2nd July 2024 and the FSCS will consider claims against it. There may be a delay in processing claims as the FSCS is still gathering information about other possible claims.
Mark Peter Houlbrook trading as Thorn Investment & Pensions Services – failed 28th August 2024 – another firm associated with the British Steel Pension Scheme.
How do I make an FSCS claim?
+ −If you or a loved one have been impacted by financial mis-selling, substandard investment advice, or suffered financial losses from transferring your pension, and the advising firm has ceased trading or gone out of business, we are here to help. Our FSCS claims team has the expertise to navigate the process on your behalf, specialising in ensuring you receive the full compensation owed to you while keeping you informed at each milestone stage of your case in jargon free, plain language.
TLW Solicitors’ view
+ −Reflecting on the list of failed firms, TLW Partner, Peter McKenna, said:
“Every month, we see another list of financial firms that have gone into liquidation or failed completely. While it can be a worrying time for investors who have used these firms’ services, knowing that a government-backed ‘lifeboat’ compensation scheme exists should give some reassurance.
“Having experts like TLW on your side when making a claim to the FSCS means that we know exactly what information and documents they are looking for, ensuring that our clients receive the compensation they are rightfully owed under the scheme and not just the loss of the amount they invested or transferred. With our extensive sector knowledge, we monitor investments and will go back to the FSCS for any additional compensation that may be owed once investments or firms fail, including spotting errors that the FSCS may make when assessing claims.
“Having dealt with many of these claims for clients, we understand the financial jargon that claimants face and can explain this in a straightforward and easy to understand way. Through our robust case management systems, we also ensure that cases are continuously progressed by sending reminders to the FSCS and maintaining momentum. We also understand the complex appeals process, so if a claim is rejected, we can advise on what to do next, giving our clients the best chances of success.
“Where clients have suffered losses exceeding the FSCS compensation limit, our team will investigate the possibility of making more than one claim. It is important to get specialist advice in this regard, as we can potentially double the compensation our clients receive.”
Contact us
+ −If you are concerned about your or a loved one’s investment or pension transfer with a failed firm and are considering making a claim through the FSCS, please get in touch. We will have no obligation discussion to explore your options, including whether you may be eligible to make a ‘no-win, no-fee’ claim.
Call 0800 169 5925, email us on info@tlwsolicitors.co.uk or complete one of the forms below.
Getting advice as soon as possible is important, as strict time limits can apply.
Minimum case values apply.
Meet the Team
Peter is a TLW Partner and our FSCS Claims Expert.
Peter is on hand to give you the best advice.
TLW Solicitors pledge to:
- Always fight your corner.
- Explain anything you don't understand.
- Provide full transparency on our charges.
- Never ask for any upfront payment.
- Recover the best compensation we can.
- Keep your personal information safe.
- Respond quickly to any queries.
