Financial Adviser Firms Declared as Failed by FSCS
The Financial Services Compensation Scheme, the government’s financial safety-net for consumers, has declared two financial adviser firms as failed this week.
Both firms, one in Wales and one in Scotland, have been declared in default and unable to meet any compensation claims. This move opens the door to the industry-funded FSCS to pay up to £85,000 in compensation per valid claim.
Scottish firm Elliot Financial Services (FRN 185289) was declared in default yesterday by the FSCS and has one claim against it. The nature of the claim has not been disclosed yet. It ceased to be authorised after 2003.
Wales firm Mackie Wealth Management (FRN 498322) was declared in default by the FSCS yesterday after the first claim against it had been upheld. The firm has two claims against it, both for investment advice.
Elliott Financial Services was based in Rutland Square, Edinburgh, and is no longer authorised. George Walter Elliot was listed on the FCA register as the CF1 director. No other regulated staff are listed.
Mackie Wealth Management was based in Mount Stuart Square, Cardiff and ceased to be authorised after 2015. The CF1 director is listed as James Francis Mackie.
FAQs
- What happens when a financial adviser firm is declared in default by the FSCS?
- How can consumers check the status of a financial adviser firm?
When a financial adviser firm is declared in default by the FSCS, it means that the firm is unable to meet any compensation claims made against it. The FSCS steps in to pay compensation to eligible claimants, up to a maximum of £85,000 per claim.
Consumers can check the status of a financial adviser firm by searching the Financial Services Register maintained by the FCA. This register provides up-to-date information on the authorization status of financial firms in the UK.
Conclusion
The declarations of Elliot Financial Services and Mackie Wealth Management as failed by the FSCS serve as a reminder of the importance of financial regulation and consumer protection in the financial services industry. Consumers should always verify the authorization status of any financial adviser firm they are considering working with to ensure that their investments and interests are protected.