The Financial Services Compensation Scheme (FSCS) released an update on 7 June explaining how clients of Hoveton-based Taylor & Taylor can claim compensation.
The FSCS declared the firm in default on 27 November 2015. In March this year, the brothers pleaded guilty to defrauding more than 200 clients of around $17m through Vangate Investment Group Fund.
This was an unregulated fund the brothers, Alan and Russell, set up and were also the directors and shareholders of between 2008 and 2015.
£5m paid out
According to the FSCS, it has already paid almost £5m for claims against the firm so far, relating to bad advice and mis-selling. It is now urging anyone who has not yet made a claim to come forward.
The update also revealed the FSCS is now reviewing whether investors may make claims against Vantage.
“We would need to conclude that Vantage owes investors a legal liability. While our investigations continue we won’t be inviting claims against Vantage.
“Once we have finished our investigations we’ll be in touch with affected investors to let them know our findings and explain the next steps,” the FSCS said.
The brothers were sentenced at a Norfolk court in early May, with Alan Taylor being jailed for six years and Russell Taylor for five years. Both were also disqualified from being company directors for 12 years.
The lawyer representing Alan Taylor said in court it was “astonishing” that someone with limited academic achievements could qualify and become a regulated adviser.
Alan Taylor left school at 16-years-old with only one GCSE, being a D in economics.
In April 2018, Suffolk Police contacted clients of Taylor & Taylor Associates and the Vantage Investment fund in relation to a confiscation order secured against the brothers.
Any funds recovered from the confiscation order will be distributed to affected investors, the FSCS said.
The money the brothers made from Vantage was used to fund lavish lifestyles, which included hiring a private jet for £150,000 and a private boat for £50,000.
They also bought several high-end Patek Philippe and Rolex watches worth tens of thousands of pounds each.
The confiscation order means that those who have already been paid out the maximum compensation limit could be entitled to a further payment, the FSCS said.