The Financial Services Compensation Scheme (FSCS) revealed that, between May and October, 45 financial services companies in the UK collapsed.
Of those, at least 25 provided financial advice, pension and/or life and health insurance services.
In particular, S&M Hughes, trading as Crescent Financial, is believed to have given poor advice to British Steel workers opting to transfer out of their defined benefit (DB) scheme.
The lifeboat scheme said in August 2020 it had evidence regarding the issue.
Caroline Rainbird, chief executive at the FSCS said: “Because these firms are unable to pay back the money they owe their customers, FSCS can step in and pay them compensation.
“As chief executive, I see first-hand the important role FSCS plays to help people who have lost money through their dealings with financial services firms that have failed or are no longer trading.
“The impact of their financial loss shouldn’t be underestimated. People who claim through FSCS are often vulnerable. We treat each person with empathy and understanding as their claim is progressed.”
Compensation
Clients who have dealt with any of the firms that have shut down and believe they are owed money can make a claim to the FSCS.
The financial advisory firms that were declared in default in the last six months are:
- Kingsway Wealth Management
- Marshall James & Company Financial Management Services
- Acord Financial Solutions (Wessex)
- Capital & Income Solutions
- Financial Solutions Midhurst
- Halebarns Financial Planning
- JP Financial Management
- Pentagon Capital Management
- Pointon York
- B Financial Management
- Opes Financial Planning
- O’Toole & Associates
- Multicorp Rose
- RJ Boorer and Associates
- S&M Hughes
- Square Seven Financial Planning
- Baronworth Investment Services
- Connected Financial Services
- DNG Financial Solutions
- Mulbury Hamilton Financial Management
- Rex Financial Services
- B&G Finance
- East West Insurance Company
- Guinness Mahon Trust Corporation
- Intuitive Associates
