A firm which counted high profile rugby stars such as Jamie Roberts, among its clients, has been declared in default by the Financial Services Compensation Scheme (FSCS). But with the directors now operating a senior partner firm at St James’s Place (SJP) the case raises questions about how ongoing liabilities should be dealt with.
Cardiff-based Castle Court Consulting stopped trading in 2012.
Since 2012, working as an appointed representative of SJP, Castle Court Wealth Management rose to the rank of a senior partner practice at SJP and amassed high profile clients including Welsh rugby star Roberts (pictured).
However last week the FSCS declared the old firm Castle Court Consulting in default. SJP said the FSCS’s declaration was only driven by one claim resulting from Sipp advice given in 2008.
Yet since 2012 the Financial Ombudsman Service (FOS) has published four upheld FOS decisions against Castle Court Consulting – three of which were over unregulated collective investment schemes (UCIS).
When contacted a spokesman from SJP said after Castle Court Consulting stopped trading in 2012, SJP worked with the firm to resolve ‘a very small number of complaints’ raised after 2012, ‘during the period that Castle Court Consulting Ltd remained an authorised firm and the adviser concerned is no longer with the business’.
These FOS complaints were settled by Castle Court Consulting, which became de-authorised by the FCA at the end of 2015.
However when a new complaint was raised at the end of last year this pushed the firm into default.
‘The [FSCS] notice follows a claim being upheld, which was made against Castle Court Consulting Ltd on advice provided on a Sipp in 2008. As a result, the company, which has not traded under this name since 2012, has been declared in default by the FSCS,’ the SJP spokesman said.
‘The claim relates to advice provided prior to the practice becoming a part of the SJP Partnership, and was not raised by the complainant until late 2017.’
Learn more about mis sold SIPP claims.