Disgruntled consumers could be in line for compensation after the Financial Services Compensation Scheme declared 14 IFA firms to be in default.
The FSCS head of communications Mark Oates called on consumers who believe they may be owed money as a result of their dealings with any of the 14 firms from across England and Wales – which include Graham R Gomm, Chartwell Associates and Orchard Finance – to get in touch.
Since it was set up by the government in 2001, the FSCS has paid a total of more than £26bn to approximately 4.5m people.
It can pay consumers for financial loss if a firm is unable, or likely to be unable, to cover claims against it.
Background
In April, a 23-page report by the Association of Professional Financial Advisers looking at the post-RDR advisory industry, The Financial Adviser Market in Numbers, found that the number of CF30 regulated staff offering advice had dropped from 23,865 in 2012 to 22,790 in 2013.
