The Financial Services Compensation Scheme (FSCS) has paid 113,000 in claims following complaints against an advice firm which, last year, was asked to cease all pension and investment business by the FCA.
The lifeboat scheme declared Omega Financial Solutions in default in August and since, has confirmed it has received 32 claims against the firm so far. These claims have all been in relation to Personal Pension Transfers and Self-Invested Personal Pensions (SIPP's).
Of the 32 complaints, 3 have been paid to the clients so far. Others are still being assessed.
The Financial Conduct Authority, back in July 2018, told Omega to cease business that related to and involved any regulated activities, such as Pensions and Investments. This was intended to prohibit the firm from recommencing any such business without approval in writing from the FCA.
The advice firm, originally Blackpool-based, entered into liquidation and was taken over by London-based insolvency practitioners Turpin Barker Armstrong last year, although, according to the FCA register, it is still authorised by the regulator.
The FSCS has also paid claims of a similar value against another advice firm, Plymouth-based Leech and Burgess IFA LLP, which was declared in default last month.
The statutory scheme has received nine claims against the company relating to SIPP's and both regulated and unregulated collective investment schemes, paying out a total of £139,000 in compensation to date on four of those claims.
In April the FSCS confirmed it would levy £153m from advisers this year. Despite this being down £22m on the original £175m predicted, many advisers have seen a marked increase in their annual regulatory bill, with the jump largely driven by rising FSCS costs.
One adviser's invoice had increased by 30% to £14,500 this year and of which he said £11,500 was to pay the FSCS levy. Some advisers faced an increase of 113% in FSCS costs.
The information in this article was sourced from: https://www.ftadviser.com/regulation/2019/09/26/fscs-receives-32-claims-against-adviser-restricted-by-fca/?utm_campaign=FTAdviser+news&utm_source=emailCampaign&utm_medium=email&utm_content=
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If you think you may have a claim relating to poor advice to put your pension into a SIPP which has now resulted in a loss, please get in touch. We may be able to help you. Call 01903 868 251 or visit www.theclaimsbureau.co.uk