The Financial Services Compensation Scheme (FSCS) has stopped taking claims against Midlands-based Newell Palmer Group Ltd, which also traded as Newell Palmer Partnerships Ltd.
This comes several days after the UK lifeboat scheme declared the firm in default on 24 March 2023.
At the time, the FSCS said it had received one claim against Newell Palmer, which was upheld. The claim was around pension advice – but was not linked to the British Steel Pension Scheme (BSPS).
Newell Palmer was acquired by Ascot Lloyd in December 2018 – in what was labelled as a “major” acquisition for the advice consolidator.
In an update, a spokesperson for the FSCS told International Adviser: “We contacted Ascot Lloyd during the investigation who provided information regarding liabilities. Ultimately, the information received from Ascot Lloyd in relation to a specific claim was misinterpreted about whether Ascot Lloyd continued to hold liability for the activities of Newell Palmer Group Limited, and who would deal with claims against the firm.”
The spokesperson added that the claim may now pass onto Ascot Lloyd rather than the FSCS. IA has contacted Ascot Lloyd for a comment but it did not reply in time for publication.
The FSCS has now taken Newell Palmer Group off its failed firm list on its website. This is not the first time that the UK lifeboat scheme has backtracked on a default declaration.
In December 2022, the FSCS stopped accepting claims against failed advisory firm IFG Financial Services, less than a week after it declared it in default.
Following this backtrack, since the start of the year, 23 firms have failed with two companies under investigation with the FSCS.
The most recent firm declared in default was Staffordshire-based Osborn Wealth Management on 22 March.