Adviser firm Hunstman Hawkes has been declared in default by the Financial Services Compensation Scheme (FSCS).
According to a note on the FSCS website, the Kent-based firm entered special administration this morning (4 March).
Prior to that, Hunstman Hawkes was under investigation by the lifeboat fund and has since received a valid claim against it to be officially declared in default. The firm was previously trading as Fenchurch Wealth Management, Pensions Direct and before that, it was known as Huntsman Hawkes Wealth Management.
The FSCS told Professional Adviser it had so far received 17 claims against the firm, including one claim regarding a self-invested personal pension (SIPP). The lifeboat fund said the cost of the SIPP claim was not yet known.
For the FSCS to be able to declare a firm in default two conditions need to be met. The firm should be in a position where it is unable or likely to be unable to meet the claims against it, and there also needs to be an eligible claim with a financial loss against the firm.
Adviser firms in default
This morning the FSCS revealed it had declared at least 12 adviser firms in default between 1 November last year and 31 January 2020. This included Avalon Investment Services, which had originally been sold out of administration by Embark Group in 2017, and NJ Associates, which was declared in default following more than 30 complaints against it.
Devon-based adviser firm Chartergroup Financial Management (CGFM) was also declared in default by the lifeboat fund following several SIPP-based complaints as well as Blackstar Wealth Management which, at the time it was reported, had received 146 claims.
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