The Financial Services Compensation Scheme has placed two financial advice firms under investigation, as well as one in default.
One of the firms under investigation, Inspirational Financial Management, became authorised in July 2003.
However, it entered administration on November 30, 2023 and was one of the firms associated with claims regarding the British Steel Pension Scheme (BSPS),
The firm was taking part in the Financial Conduct Authority’s redress scheme for BSPS members and therefore, the FSCS expects a number of these claims to arise.
The other firm under investigation, Holborn Assets, became authorised in February 2015 and entered administration on October 24, 2023.
The FSCS said it has gone into liquidation and believes there are likely to be a small number of claims from former clients for compensation for unsuitable advice.
The lifeboat scheme said it would only be able to provide more details if the firm is declared in default, which will happen once the first valid claim for compensation is assessed.
Meanwhile, Quadros Financial Solutions was declared in default last week (December 1).
The FSCS said it has had nine claims against this firm, with five in progress, one upheld, and three rejected.
All claims are for pensions advice relating to self-invested personal pension.
sonia.rach@ft.com
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