The Financial Services Compensation Scheme (FSCS) announced that advice firm Keywood Olley & Associates Limited was liquidated on 5 April 2022.
The advice firm, which traded as trading as North East Mortgages and EMH Financial Planning, was one of the companies associated with the British Steel Pension Scheme (BSPS) scandal.
International Adviser understands that there have been over 20 British Steel firms declared in default.
The FSCS told IA that it has so far received two claims against the business, both of which are yet to be paid out. Only one is a British Steel claim.
The UK lifeboat scheme is asking clients of the firm to check if they are eligible for compensation.
IA reached out Keywood Olley & Associates Limited but received no response.
BSPS redress scheme
In March 2022, the Financial Conduct Authority (FCA) proposed setting up a compensation scheme for former members of the BSPS who received unsuitable advice to transfer out of the fund.
The FCA said the proposed scheme would cover transfers that took place between 26 May 2016 and 29 March 2019.
If greenlit, 1,400 victims could receive £71.2m ($95m, €86.5m) in compensation.
The regulator believes 343 advice firms will be affected by this and they will need to pay a combined total of £9.1m in compliance costs to cover the historical reviews.
