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Consumer compensation from failed advice firms approaches £1bn mark

by: Carmen Reichman
  • 07/11/2014
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Consumer compensation from failed advice firms approaches £1bn mark
Compensation paid out by the Financial Services Compensation Scheme (FSCS) to customers of failed advice firms has so far totalled almost £1bn.

In a post published on 6 November the scheme said since its inception in 2001 it has paid out more than £975m to 165,000 clients of a total of 2,391 failed financial advice firms.

Overall the FSCS helped 4.5m people, paying out £26bn in compensation. Insurance accounted for more than £1bn.

Chief executive Mark Neale said the scheme has reached a “major milestone” in insurance compensation.

He said: “FSCS is there for consumers who have nowhere else to turn. Our message to people is simple: FSCS protects your insurance, investments and deposits. We’re here for you.”

The FSCS said in October it has so far paid out £21.2m in claims related to the collapse of adviser network Alpha 2 Omega (A2O) after finding widespread mis-selling of unregulated collective investment schemes (UCIS).

If the FSCS declares a firm in default, this paves the way for consumers to claim compensation as the firm will no longer pay out.

For information, consumers may call the FSCS Initial Contact Team on 0800 678 1100 or 020 7741 4100 or byemail at enquiries@fscs.org.uk.

The 17 firms the FSCS has declared in default:

NORTH WEST
Home Finance
Richard Boundy
53 ST. ANNES AVENUE, GRAPPENHALL, WARRINGTON, CHESHIRE,
WA4 2PL

NORTH EAST
General Insurance
Financial Surgeons t/a UK

Life and uk

life.co.uk

2 SILVERTON COURT,
NORTHUMBERLAND BUSINESS PARK, CRAMLINGTON, NORTHUMBERLAND, NE23
7RY

Investments
Momentum Investment and Financial Services Limited
,
34 HIGH STREET, YARM,
CLEVELAND, TS15 9AE
MIDLANDS
Investments Mentor Professional,
UNIT 1C, BICTON BUSINESS PARK, ISLE LANE, SHREWSBURY,
SHROPSHIRE,
SY3 8DY

PRM Financial Management Limited
STERLING HOUSE, 49 MAIN ROAD, LEABROOKS,
ALFRETON,
DERBYSHIRE,
DE55 1LA

Prosperity Corporate Consultancy
Eagle House, St. Johns Road, Stourbridge,
West Midlands,

DY8 1HE

General Insurance
3 Counties Mortgages
10 GLEN PARK CLOSE, CHELLASTON, DERBY, DERBYSHIRE,
DE73 5NT

SOUTH EAST & LONDON

Investment
Greenage Ventures Limited T/A Integritas Financial, Professional
Financial Solutions
,
SUITE 41, THAMESGATE HOUSE, VICTORIA AVENUE, SOUTHEND
-ON-SEA, ESSEX,
SS2 6DF
SRFM

Limited formerly Paramount Financial Services Limited,
Park Regent Financial
Services Limited T/A Highworth Financial Services Abroad, SRFM Paramount
SOFTECH HOUSE, LONDON ROAD, ALBOURNE, WEST SUSSEX, BN6 9BN

St. Paul’s Equities Limited
42 – 44 CARTER LANE, LONDON, EC4V 5EA

General Insurance
Everitt Boles Limited,
288 BISHOPSGATE, LONDON, EC2M 4QP

 

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