The Financial Services Compensation Scheme (FSCS) has reversed its decision to declare UK financial advice firm Better Retirement Group in default.
On 16 June 2021, the UK lifeboat service said it was making investors aware that the Northampton-based advice firm had failed, and they may be eligible for compensation.
The Better Retirement Group received a business winding-up court order on 16 December 2020. However, the court order was rescinded on 11 February 2021.
The FSCS said in a statement on 28 June 2021: “Following discussion with the firm, it has been established that the FSCS default was declared on the basis of a now-rescinded winding-up order against the firm.
“The FSCS declaration of default has therefore been reversed.”
The FSCS told International Adviser it had “reversed a default on a very limited number of occasions” and it added that it was “not aware” that the rescinding of the winding up order had “happened at the point we declared the default”.
“Going forward, we will check all compulsory liquidations and strike-off notices at the point of default to make sure that they have not been withdrawn or rescinded,” it added.
When asked about compensation for the UK advice firm, it told IA that “this is a matter for FSCS and the Better Retirement Group”.
‘Systems need to be updated more quickly’
Stuart Bayliss, executive chairman of the Better Retirement Group, said to IA: “We’re very pleased the FSCS has corrected its announcement.
“We are disappointed that the court order for rescinding the winding up, which was made on the 11 February 2021, led to an announcement from the financial services compensation scheme on 16 June 2021.
“Their systems really need to be updated more quickly. Announcements like that do not come without consequences for customers, other companies and most importantly, your team of employees.
“It’s been a difficult couple of days, but at least we have got back to where we should be.”