Clients may be able to claim compensation from the advisers, claims the scheme.
It is becoming a turbulent time to be a financial adviser, with more and more financial firms being declared default each month by the Financial Services Compensation Services (FSCS).
The FSCS is the UK's compensation fund for customers of authorised financial services firms. They may pay compensation if a firm is unable, or likely to be unable, to pay claims against it.
In recent times, we are seeing that the FSCS are stepping in more frequently where financial advisers are failing.
Rising amount of firms being declared default
August saw no fewer than six firms being declared default by the FSCS.
These included financial adviser Chadkirk Wealth Management Ltd from Staffordshire, as well as London-based Cain Lambert Ltd, MML Administration Ltd from Bristol, Clearcredit Ltd from Liverpool, The Man for Mortgages Ltd from Derbyshire, and Leicester-based Abbot Insurance Brokers.
Now, the FSCS has confirmed three more firms were declared default in September, including Kent firm Foreman Financial Services, The Financial Factory in northern Belfast and London-based J. Soussan.
What is a declaration of default?
When the FSCS declares a firm default, it means it is satisfied that the financial adviser is unable to pay compensation that may arise when a claim is made against it. Clients of that financial adviser are then able to seek compensation from the FSCS instead.
More than £26bn in compensation has now been paid out by the FSCS since 2001 when the organisation started.
Therefore, clients of the Foreman Financial Services, The Financial Factory and J. Soussan are still able to claim compensation if they believe they have been mis-sold a pension.
How can Smooth Law Commercial help?
At Smooth Commercial Law, our team of experts have extensive experience in dealing with a whole manner of claims that arise from negligent and/or unsuitable financial advice. We are seeing an increase in mis-sold SIPP claims, and have managed to secure compensation for many of our clients.
Should you have a claim, we can deal with your case and look to recover compensation for not just your loss of investment but also any adverse tax liabilities that you may now be facing as well.
You can contact our experienced team by calling the number at the top of this page or by emailing firstname.lastname@example.org.