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Consumers may be able to claim compensation if they have lost money as a result of their dealings with a financial firm declared in default. The Financial Services Compensation Scheme (FSCS) can pay compensation for 39 firms recently declared in default by us and for one firm declared in default by the Financial Services Authority (FSA). FSCS is the UK’s statutory compensation scheme for customers of regulated financial services firms. It provides a free service to consumers.

Consumers can claim up to £48,000 for the 29 investment firms declared in default by the FSCS and the firm declared in default by the FSA for ICD claims. This is made up of 100% of the first £30,000 and 90% of the next £20,000. The remaining ten firms are general insurance intermediaries, for which FSCS can pay compensation of up to 100% of the first £2,000, plus 90% of the balance of a claim. Compulsory insurance, such as motor insurance, is protected in full.

Declaring a firm in default means a firm regulated by the FSA (such as a financial adviser) has been found by FSCS to be unable, or likely to be unable, to pay claims against it. This means that customers who have lost money as a result of dealings with one of these firms might be able to claim compensation from FSCS.

Jonathan Clark, FSCS’s Director of Claims said: “FSCS is here and people who have suffered a loss when an authorised financial services firm fails have somewhere to turn to. Anyone who thinks they may have lost money as a result of dealing with any of the firms listed should contact FSCS as we may be able to help.”

FSCS covers investments, deposits, insurance, mortgage advice and arranging (from 31 October 2004), and advice about general insurance and the arranging of policies (from 14 January 2005).

The type of investment claims that FSCS handles often relate to advice. For example, if somebody has been advised to buy an investment product that was unsuitable for them and they have lost money as a result of the advice they received. However, claims might also be for financial loss arising from negligent investment management, fraud, or if a firm can’t return its customers investments or money. FSCS expects most claims against the insurance intermediaries to relate to the return of customers’ premiums where the relevant insurance cover was not put in place.

A list of the 29 investment firms and ten insurance intermediaries declared in default by the FSCS and the firm declared in default by the Financial Services Authority (FSA) for ICD claims is attached. Consumers who believe they may have a claim should contact FSCS on 020 7892 7300, or by email at enquiries@fscs.org.uk. Further information about FSCS’ work and how to claim is available from its website at www.fscs.org.uk.

For more information about FSCS see Notes to Editors section or visit www.fscs.org.uk

Press Enquiries:
Suzette Browne: 020 7892 7372 suzette.browne@fscs.org.uk 
Sarah McShane: 020 7892 7882 sarah.mcshane@fscs.org.uk 

Notes to Editors:

1. About FSCS
The Financial Services Compensation Scheme (FSCS) is the UK's statutory compensation scheme for customers of authorised financial services firms. This means that FSCS can pay compensation if a firm is unable, or likely to be unable, to pay claims against it. FSCS is an independent body, set up under the Financial Services and Markets Act 2000 (FSMA). Our service is free to consumers.

2. UK’s statutory Compensation scheme
As the UK’s statutory compensation scheme, FSCS can only pay for financial loss where a firm is unable to meet claims.

3. Declaring a firm in default
Before FSCS can pay compensation it must be satisfied that a firm is unable to meet claims. It describes this as being ‘in default’. The Scheme will declare a firm in default if:
• it has received at least one claim; and
• it is satisfied that the firm is unable (or likely to be unable) to pay claims against it.

FSCS is required to do this before we can pay compensation to eligible claimants. Declaring a firm in default allows consumers who believe they may have lost money as a result of their dealings with that firm to apply to us for compensation.

4. Investment claims
For investment claims, compensation aims to put consumers back into the position they would have been in had they not invested. The compensation limit for investment claims is £48,000 per person.

5. Insurance claims
From 14 January 2005 consumers are eligible for protection if they buy general insurance policies through an authorised firm in the UK, or in some cases a firm’s branch in the EEA. The compensation limit for insurance claims is 100% of the first £30,000 and 90% of the next £20,000.

The Scheme is triggered if an authorised firm goes out of business and cannot meet claims against it. FSCS may be able to help if, for example:

• a customer has been mis-sold a policy and has lost money as a result;
• the firm becomes insolvent and can’t return money owed to a customer;
• a customer is a victim of fraud.

6. Authorised firms
Our rules are made by the Financial Services Authority (FSA), the independent watchdog set up by government under FSMA to regulate financial services in the UK and protect the rights of consumers. Our rules tell us which types of claim are eligible for compensation, and limit how much compensation we are allowed to pay. Firms need permission from the FSA to carry out a regulated activity, which covers activities such as accepting deposits, insurance business and investment business.

Dealing with an authorised firm gives consumers access to the Financial Ombudsman Service (FOS) and FSCS. Consumers can check that the firm they are dealing with is authorised by contacting the FSA’s Consumer Helpline on 0845 606 1234.

Declarations by FSCS
11 December 2008

EAST
Bennetts Independent Financial Advisers, SWAN HOUSE, 9 QUEENS ROAD, BRENTWOOD, CM14 4HE

Lifestyle Financial Management (formerly Paul Gunter Insurance and Investment Services), 38 WATLING STREET, RADLETT, HERTFORDSHIRE, WD7 7NQ

P Sheridan & P Keys t/a Phillips Mackie Financial, THE BOUNDARY, 8 CROMER ROAD, NORWICH, NR6 6ND

MIDLANDS

A J Richardson Financial Services, VENTURE HOUSE, ALLENBY BUSINESS VILLAGE, CROFTON ROAD, LINCOLN, LN3 4NL

Berry Birch and Noble Financial Planning Limited (formerly Berry Birch & Noble Limited), 5th FLOOR, EATON HOUSE, EATON ROAD, COVENTRY, CV1 2FJ

Paul Davies and Associates Limited, THE AUCTION HOUSE, 87/88 ST. JOHN ROAD, STOURBRIDGE, DY8 1EH

P S Financial Services Limited (formerly Perkins Slade Financial Services Limited), ELIZABETH HOUSE, 22 SUFFOLK STREET, QUEENSWAY, BIRMINGHAM, B15 1BQ

R Kalisiak and C Wells t/a Goldsmith Insurance, 6 STRELLEY ROAD, ASPLEY, NOTTINGHAM, NG8 3AP

S Johal & C Burrows (at various times) t/a PTL Associates (UK), 2 CHAPEL LANE, RAVENSHEAD, NOTTINGHAMSHIRE, NG15 9DA

NORTH
Associated Services Limited, 105 MAIN STREET, FRODSHAM, VIA WARRINGTON, WA6 7AB

Cloughley Stoll Sumner Limited (formerly Cloughley & Partners Limited), 404 BARLOW MOOR ROAD, CHORLTON-CUM-HARDY, MANCHESTER, M21 8AB

H G Harden Associates Limited, 21A HARDSHAW STREET, ST HELENS, MERSEYSIDE, WA10 1QG

P V Newton & Company, 8 EASTWAY, SALE, CHESHIRE, M33 4DX

NORTHERN IRELAND
Northridge Financial Services Limited, 102 LONGSTONE STREET, LISBURN, COUNTY ANTRIM, BELFAST, BT28 1TR

SCOTLAND

Claymore Finance Limited, 66 KIRKBANK ROAD, BURNTISLAND, FIFE, SCOTLAND, KY3 9JA

Cunningham Guild & Scott (Life & Pensions) Limited formerly Cunningham Guild & Scott (Insurance Brokers) Limited, 1 NORTH BIGGAR ROAD, AIRDRIE, LANARKSHIRE, ML6 6EJ – Mr Cunningham, a Director of the firm voluntarily wound the company up on 31 December 2005 following his retirement.


SOUTH EAST (including London)

Andover Insurance and Mortgage Advisory Service, 41 LONDON STREET, ANDOVER, HAMPSHIRE, SP10 2NU

Fernside Financial Services Limited, 138A CHESTERFIELD ROAD, ASHFORD, MIDDLESEX, TW15 3PD

I.P.M. Financial Services, 42 LANSDOWNE PLACE, HOVE, EAST SUSSEX, BN3 1HH

Manager Driven Investment Limited, THE OLD LAUNDRY, OSSINGTON BUILDING, LONDON, W1U 4JZ

Melville J Burbage & Associates Limited, 19 CHURCH STREET, BASINGSTOKE, HAMPSHIRE, RG21 1QG

Nicholas Dean Mortgage Financial Consultants, CLEVEDON HOUSE, 453 HIGH ROAD, LONDON, N22 4JD

P Over t/a Premier Financial Services, 12 FRATTON ROAD, FRATTON, PORTSMOUTH, PO1 5BX

S. K. Insurance & Investment Services Limited, 172 WESTERN ROAD, SOUTHALL, MIDDLESEX, UB2 5ED

Sky Capital UK Limited, WALBROOK HOUSE, 23 – 29 WALBROOK ROAD, LONDON, EC4N 8LA. The Financial Services Authority (FSA) has declared Sky Capital UK Limited in default for all Investors Compensation Directive (ICD) claims.

Tower Assurance Advisory Services Limited, 16 ST JOHN STREET, LONDON, EC1M 4AY

SOUTH WEST
D Evan & J Parker t/a Canford Insurance Life & Pension Consultants formerly Canford Insurance Services, 11 WESTHAM CLOSE, CANFORD HEATH, POOLE, BH17 9HW

WALES
Risca Insurance Consultants Limited formerly t/a Brian R Frost, 28 WOOD CRESCENT, THE LINKS, WALES, NP10 0AL

YORKSHIRE & HUMBERSIDE
RBR (Financial Services) Limited formerly Ramsbottom & Co Limited, 43/47 HIGH STREET, QUEENSBURY, BRADFORD, BD13 2PE

Rod Serrell, YORKSHIRE BUILDING SOCIETY, 20-26 PRINTING OFFICE STREET, DONCASTER, DN1 1TR


General Insurance defaults:
Claims against the following companies will have the limit for general insurance
Insurance limit: 100% of the first £2,000 and 90% of the remainder if the claim.

EAST
BHP Insurance Services, 35 FROGMORE, ST ALBANS, HERTFORDSHIRE, AL2 2JT

The IMR Group Limited, 49 SHERBORNE AVENUE, LUTON, BEDFORDSHIRE, LU2 7BD

MIDLANDS
The Black & White Group Limited, FINANCE HOUSE, TOWERS BUSINESS PARK, RUGELEY, WS15 1UZ

NORTH
Orion Direct Limited, BANK HOUSE, KING STREET, CLITHEROE, BB7 2EL

Ideal Insurance Services Limited, SUITE ONE OAK HOUSE, CHORLEY, LANCASHIRE, PR7 1DW

SCOTLAND
Capital Mortgage Connections Limited, GROUND FLOOR RANKINE HOUSE, 100 BORRON STREET, GLASGOW, G4 9XG

SOUTH EAST (including London)
ICM Group Limited, 11 BLACK LION STREET, BRIGHTON, BN1 1ND

Moreland Jones Insurance Services, 146 TANKERTON ROAD, WHITSTABLE, KENT, CT5 2AW

WALES
Cars 4 U (UK) Limited, UNIT G13, MAIN AVENUE, PONTYPRIDD, CF37 5YG

YORKSHIRE & HUMBERSIDE
Supreme Insurance Services, 6A RUSSELL STREET, KEIGHLEY, BD21 2JP