The Financial Services Compensation Scheme (FSCS) has declared two advice firms in default over pensions advice, as well as has shared an update that MCI Global Investment Advisors Limited has entered liquidation.
The lifeboat fund has confirmed to Professional Adviser that it has received two claims relating to West Yorkshire-based advice firm Carl Julian Hanson, trading as Bright Future. Both claims related to pension transfer advice. One has been rejected and one is still in progress. The FSCS confirmed that there is no indication that these are British Steel Pension Scheme (BSPS) related.
According to the Financial Conduct Authority (FCA) register, the firm has no longer been authorised since March 2010. It was first authorised in March 2007.
For Clwyd-based Chesterton Grant Limited, the FSCS has had one claim relating to self-invested personal pensions (SIPP) advice that has been upheld. There is no indication that the claim is BSPS related.
The FCA register shows it has not been authorised by the FCA since 2023. Meanwhile, Companies House indicates that the firm was dissolved in February this year.
Chesterton Grant was responsible for appointed representative firms Kenneth Evans Wilson no longer authorised since 2020, Marstane Accountancy Services, no longer authorised since 2021, and WGE Advisory, which was no longer authorised since 2014.
FSCS also updates on failed alternative fund
Meanwhile, the FSCS has also confirmed that small authorised alternative investment fund manager MCI Global Investment Advisors is under investigation, and it is accepting claims and customers who believe they may have a potential claim against it.
The firm provided alternative investment fund management services for funds, including Novus Black Fund UK which is an unauthorised firm.
The FCA recently wrote to Novus Black Fund on 23 October investors about unreported losses before it posted an update on 25 October that the firm entered into creditors voluntary liquidation. Gareth Howarth of Path Business Recovery Limited was appointed as liquidator.
From the information available, the regulator believed the fund has experienced significant losses that have not been reported to investors.
On 8 August 2024 and 6 September 2024, following FCA invitation, MCI agreed to a number of restrictions, which meant it has to make sure no trades or payments were allowed on any trading accounts held by the Novus Black Fund, close any open investment positions held by Novus Black Fund, and notify investors of these restrictions.
The regulator said that Howarth will shortly be writing to investors in the fund to explain further what this means.
A regular update from the FSCS confirmed that a total of six firms were declared in default – meaning clients can potentially make claims against them – in August and September.
