The Financial Services Compensation Scheme (FSCS) declared Manchester-based SQ Wealth Limited in default on 6 April 2023.
The advice firm was formerly called Quays Wealth Management Limited.
According to Companies House, the firm entered administration on 31 October 2022. The Financial Conduct Authority (FCA) register said that the business has been authorised since August 2015.
The FSCS told International Adviser that it has received 13 claims for SQ Wealth for pensions-related advice.
Just one has been upheld so far, which triggered the default. The other 12 are in progress.
Since the start of the year, 27 firms have failed with the most recent firms declared in default being West Yorkshire-based Hudson Foster Financial Services Limited, Kent-based Kings; and Manchester-based Help Financial Limited.
Investigation
Also on 6 April, the FSCS announced it was investigating wealth management firm WealthTek.
This comes after the FCA ordered the company to immediately cease all regulated activities due to “serious regulatory and operational issues coming to light”.
WealthTek is a wealth management firm authorised and regulated by the FCA to provide discretionary, advisory and execution-only services to its retail clients.
The financial watchdog appointed interim managers from BDO LLP to take control of WealthTek, which also trades under the names of Vertem Asset Management and Malloch Melville.
The FSCS said it “will not be opening to customer claims right now” but will be “investigating whether there are any claims that are eligible for compensation and how any claims might best be dealt with”.
As part of the investigation, the FSCS will be working closely with the joint special administrators and the FCA.
Northumbria Police, working in partnership with the FCA, arrested a 48-year-old man in connection with the regulatory and operational concerns. The FCA interviewed him under caution.
