The Financial Services Compensation Scheme (FSCS) confirmed five companies in the UK have gone out of business and are not able to meet any claims against them.
Customers who are owed money can make a claim via the lifeboat scheme.
The businesses which defaulted throughout June and July 2022 included three advice and wealth firms, a management consultancy and a trading company. They are:
- County Capital Wealth Management (trading as The Pension Review Service and Fathom) in County Durham;
- Cowley & Miller Independent Financial Services in Ayshire;
- Curzon Capital Limited in London;
- Smith, Law & Shepherds IFA in Southport; and
- Tradenext in Ilford.
Both County Capital WM and Smith, Law & Shepherds provided pension transfer advice to British Steel members.
As of July 2022, the FSCS had received 68 claims against County Capital and 20 against Smith, Law & Shepherds.
The lifeboat scheme added that when a regulated financial services firm fails and cannot pay a customer’s claim, the FSCS can step in to pay compensation.
Sarah Marin, FSCS’s chief customer officer, said “In 2021/22, we helped 108,838 customers get back on track by either paying them compensation or enabling them to transfer to a new provider for their investment or insurance policy.
“Whilst the number of firm failures has reduced, the total compensation amount is forecast to increase as claims volumes and values per firm rise.”
