The Financial Services Compensation Scheme (FSCS) publishes a list of firms they deem ‘in default’ or ‘under investigation’.
The Financial Services Compensation Scheme (FSCS) was established in 2001 by the government to serve as a safety net for customers of financial services firms regulated by industry watchdog, the Financial Conduct Authority (FCA), that fail. When these firms go under, they typically cannot fulfil any claims made against them, potentially leaving their customers out of pocket. The FSCS can also intervene to facilitate customer claims for firms in liquidation while other investigations are ongoing.
The FSCS is financed entirely by the financial services industry through levies and compensates customers who have suffered losses. The current compensation limits are £85,000 for individual claims and £170,000 for joint accounts.
Some of the latest firms highlighted by the FSCS include:
Intelligent Wealth Management Partnership Ltd (trading as IWMP) failed on 30th October 2024. The firm has one upheld claim against it, relating to pensions advice. The Lichfield-based firm lost its Financial Conduct Authority authorisation in September 2021.
Charterhouse (Chester) Ltd, trading as Charthouse Asset Management, failed on 12th November 2024. The Whitchurch-based firm provided pension advice to clients.
Eunisure Ltd, trading as Hawkedon Health, Eunisure Commercial & General, Dunn & Co failed on 14th November 2024. The firm was under investigation by the FSCS back in 2022 due to issues with insurance advice. Claims are now open against Eunisure.
Norrix Financial Services Ltd, formerly RNAMK Ltd, failed on 19th November 2024. Based in Stoke-on-Trent, the firm has one upheld complaint against it, relating to pension transfer advice.
Gainsborough Financial Services failed on 25th November 2024. The Leeds-based company has one upheld claim against it relating to pension transfers.
Intelligent Money Ltd was a Self-Invested Personal Pension Scheme (SIPP) operator based in Nottingham. Its assets and customers have been transferred to Quai Administration Services Ltd, which will operate the Intelligent Money SIPP and ISA Plan Manager and communicate the next steps in due course. Clients who were part of the Intelligent Money workplace pension scheme will also receive communication from Quai. The FSCS will be investigating whether there are any eligible claims against Intelligent Money, which could take some time.
Bourne House Ltd, formerly F T Financial Management Ltd, was a Surrey-based financial adviser that was dissolved in 2015. The firm has been declared in default (16th December 2024) after one pension complaint was successfully upheld. The firm is no longer able to meet any claims against it, and clients should seek recourse through the FSCS.
What do I do if I already have a claim with the Financial Ombudsman Service (FOS) and the firm goes bust?
+ −The Financial Ombudsman Service (FOS) is an independent government-backed body set up to settle disputes between financial businesses and their customers. If you have already raised a complaint against your financial adviser or firm through FOS, then they will contact you and let you know what to do next.
TLW Solicitors’ point of view
+ −Sarah Spruce, Legal Director at TLW Solicitors, says of the latest round of failed firms:
“Many people will admit to knowing little about pensions and what is best for their long-term financial wellbeing. Changing jobs throughout your working life is becoming increasingly commonplace, so you could find yourself with several small pension pots and no real idea of what to do with them. You may have seen firms advertise ‘consolidation’ pensions or ‘more flexible’ investment choices.
“With the introduction of pension freedoms in 2015, some unscrupulous advisers persuaded investors to transfer from ‘gold standard’ workplace pensions to unsuitable high-risk SIPPs, or provided poor advice on accessing retirement funds early, both of which can result in financial loss.
“Complaints against firms are growing in number, and people are rightfully seeking compensation for the money they have lost to get their retirement plans back on track. FOS and the FSCS exist to give investors peace of mind and a means of getting some, if not all, of their money back. This is particularly important after a firm has ceased trading and been declared insolvent.”
Get in touch – TLW Solicitors can help
+ −If you are concerned about yours or a loved one’s pension or investment, contact us today to find out if you have a claim for compensation. We will review your possible FSCS claim on a confidential, no-obligation basis, explore your options and let you know if you may be eligible to make a ‘no-win, no-fee’ claim. Call us on 0800 169 5925, email info@tlwsolicitors.co.uk or complete the callback form below.
It is important to get advice as soon as possible, as strict time limits can apply.
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