Advice to invest in a troubled unregulated overseas property scheme has helped push 24 firms over into failure, the Financial Services Compensation Scheme (FSCS) has said.
The FSCS said it has received around 130 claims against two dozen defaulted firms in relation to advice to invest in the Stirling Mortimer property funds. A firm is declared in default by the FSCS if it is unable, or likely to be unable, to pay claims against it. Often claims against a firm are referred to the FSCS by the Financial Ombudsman Service - which deals with complaints against active businesses - once it becomes clear that the firm will not be able to pay redress it is deemed liable for. The cost of compensation to investors via the FSCS is paid for by the industry in the...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
