The Monetary Companies Compensation Scheme has launched an investigation right into a duo of linked Dorset monetary adviser corporations following recommendation given to members of the British Metal Pension Scheme.
Kathryn Brown (FRN: 670840) and KBFS Monetary Ltd (FRN: 831504) have been each positioned below investigation on 9 April.
KBFS Monetary had its authorisation revoked by the FCA on account of enforcement motion on 9 February.
The corporate, based mostly in Weymouth, had been regulated by the FCA since 1 July 2019. The crew of three was headed by Kathryn Brown, who previously acted as a sole dealer between Might 2015 and July 2019.
The FSCS suggested that the place clients acquired recommendation previous to 1 July 2019, the recommendation was seemingly given by the agency’s Kathryn Brown (FRN: 670840) relatively than KBFS Monetary.
No FSCS buyer claims have been upheld in opposition to both agency as but. Each corporations have been related to claims associated to the British Metal Pension Scheme.
In 2017, many British Metal employees have been suggested to switch out of their outlined profit pension into an outlined contribution pension.
The FCA has arrange a redress scheme for individuals who have been suggested to switch out of the BSPS pension between 26 Might 2016 and 29 March 2018.
Corporations have been requested to overview the recommendation they gave, determine if it was unsuitable and calculate and pay redress to shoppers the place the unsuitable recommendation precipitated a monetary loss.
As KBFS Monetary has now gone out of enterprise, it’s now not in a position to proceed to participate within the redress scheme. Subsequently any new claims in opposition to the agency ought to be submitted to the FSCS.
It was the most recent in various corporations which have failed attributable to complaints involving pension switch recommendation, together with Sheffield-based Abbey Lane Monetary Associates Restricted (FRN 649170), which additionally failed in March and was linked to the BSPS scandal.
One other BSPS-linked agency was declared in default in March: Aqua Monetary Companies Restricted of Cheadle in Cheshire.
