IFA firms featuring property divisions, 3 Counties Mortgages of 10 Glen Park Close, Chellaston, Derbyshire and PRM Financial Management Limited of 49 Main Road, Leabrooks, Alfreton, Derbyshire also, were named in a group of 17 which tipped into default recently.
The Financial Services Compensation Scheme declares a firm to be in default once a claim has been lodged against it and the independent body is satisfied that the company “does not have sufficient assets to meet claims.”
Mark Oakes, Head of Communications for FSCS said: “FSCS covers a wide range of financial services in the UK. We’re there for consumers when firms go bust. We have already started paying compensation in respect of these firms.
“However, we are encouraging anyone who has not been contacted by us and believes they may be owed money as a result of their dealings with any one of these firms to get in touch with FSCS.”
The independent body can allocate up to £50,000 in compensation per person per firm for home finance and investments.
FSCS has paid out more than £ 26 billion in compensation since 2001 and assisted over 4.5 million individuals.
It has dealt with the default of 2,391 independent financial advisers since it was set up in 2001 while handling more than 165,000 claims.
The scheme protects insurance, investments, deposits and mortgage advice and arranging.
Leave a comment