Linked advice firm to Greyfriars Asset Management Portfolio Six (P6) investment in Default.
The FSCS (Financial Services Compensation Scheme) has declared the advice firm Consumer Wealth who have been identified as a 'distributor' of Greyfriars Asset Management P6 investment.
The firm, based in Gateshead, Consumer Wealth, went into liquidation back in mid-January following 13 complaints against them at the FOS (Financial Ombudsman Service).
The FCA (Financial Conduct Authority) put out a statement about the firm shortly after they entered liquidation. The statement said that clients that were thinking of making a claim or had worries or concerns about the advice they received needed to 'contact the liquidator directly'.
Consumer Wealth also agreed to restrict their permissions with the FCA which means they can no longer carry out regulated activity and were unable to dispose of assets without consent from the FCA.
The FSCS has begun accepting claims as they have declared Consumer Wealth default. This has been moved to a creditors' voluntary liquidation.
'Many Consumer Wealth customers seem to have been advised to invest in high risk, non-standard investments, many of which are now illiquid,' according to the FSCS.
'We are also aware that Consumer Wealth advised some of its customers to switch existing personal pensions to Sipps. Consumer Wealth has also been identified as a distributor of the Greyfriars Asset Management Portfolio Six (P6) investment, which provided investment into non-standard assets.'
Greyfriars Asset Management Portfolio Six (P6) Investment
Greyfriars P6 was a variety of unregulated overseas property-based corporate bonds, with at a minimum of one going into administration since. In November 2016 the FCA asked Greyfriars to stop accepting money into its P6 portfolio, the DFM was liquidated last year.
There are investigations by the FSCS into claims made against Greyfriars and the offering of their P6 after concerns raised by the FCA.
Claims are being accepted against Greyfriars however are not being investigated by the relevant teams within the FSCS.
In order for the claims to be taken to the next stage, the FSCS need to work out if Greyfriars owes a civil liability to customers where they could then sue the firm in court. They would be classed as 'protected claims' if they are liable.
The FSCS and Smith & Williamson have been working together with the aim to obtain clients files and other documents and evidence to assist in reaching a conclusion on whether there are protected claims against Greyfriars. The FSCS is currently considering the practices of Greyfriars to conclude if there were failings in the way the firm dealt with clients.
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The information in this article has been sourced from: https://citywire.co.uk/new-model-adviser/news/advice-firm-linked-to-greyfriars-p6-goes-into-fscs-default/a1250338?re=66214&ea=502303&utm_source=BulkEmail_NMA_Daily_EAM&utm_medium=BulkEmail_NMA_Daily_EAM&utm_campaign=BulkEmail_NMA_Daily_EAM