The FSCS regularly publishes a list of firms it has declared in default, meaning they are unable to pay out on claims made against them.
A business called Vantage Investment Group, owned and run by two Norwich-based brothers, appears on the most recent list.
Interestingly, the brothers were also shareholders and directors of IFA firm Taylor and Taylor Associates between 2008 and 2015.
During this period, around £17 million pounds of 239 clients’ money was invested without their knowledge, into the unregulated Vantage Investment Group fund through Taylor and Taylor Associates.
According to Police, the Taylors used the money to fund expensive lifestyles, which included cars and a private boat. The pair were each charged with seven counts of fraud in 2016, and pleaded guilty in 2018 to a single count of conspiracy to defraud.
A 2018 data request by New Model Adviser® revealed the lifeboat fund had paid out £5 million for a total of 176 complaints against the Taylor and Taylor. Of these, 102 related to advice on Sipp products, 28 related to unregulated collective investment schemes, and 23 related to investment bonds.
Other IFA firms in today’s FSCS list were:
Synergie Financial Planning Limited (trading as Future Financial), Dorset.
Magna Wealth Management Limited, Worcestershire.
TBO Investments Ltd, Birmingham
Kennett Investment, Life & Pensions Limited, Humberside.
Premier Financial Solutions (Harrogate) Limited
Pensionology UK Limited (Formerly Broker-Support Limited), Cheshire
Ulverston Financial Services Limited, Cumbria
Susan Fleck Associates Limited, Kent
John Henry Moore, East Sussex
Sequant Capital Limited Formerly Central Markets (London) (although still listed as active on the FCA register at the time of writing, check the register here).
GD Tancred Ltd, Peterborough. GD Tancred’s FCA register entry records that it was censured by the Financial Services Authority back in 2006, though it is not clear whether there is any connection to it going into default in 2019.
Advisers are set to fork out £153 million towards the FSCS levy in 2019/20. In April, the FSCS said it is still seeing the majority of claims coming from unsuitable Sipp advice. However, there was also a slight slowdown in advice compensation claims.
The FSCS has in fact recovered £300 million over the past five years from failed financial services firms.