FSCS confirms five firms declared in default in Feb-March 2022
The UK Financial Services Compensation Scheme (FSCS) today issued a notice that consumers could be in line for compensation.
FSCS has confirmed that five firms were declared in default in February and March 2022. This means these firms have gone out of business and FSCS believes they are unable to meet any claims themselves.
If a regulated financial firm is no longer trading and cannot pay a customer’s claim, FSCS can step in to pay compensation.
Declarations by FSCS from 1 February to 31 March 2022:
- John Dyer (Life & Pensions) Ltd (FRN 125135), 100 Walter Road, Swansea, SA1 5QE
- Perry Prowse (Insurance Consultants) Ltd (FRN 311916), Hampton House, 23 Longbrook Street, Exeter, EX4 6AB
- Philip Griffin & Associates (FRN 139008), Langburn Bank, Castleton, Whitby, North Yorkshire, YO21 2EU
- SDSC (Midlands) Ltd, formerly t/a SJL Wealth Management Ltd (FRN 496209), Vicarage Corner House, 219 Burton Road, Derby, Derbyshire, DE23 6AE
- Strathkelvin Credit Union Ltd (FRN 213891), 3 Catherine St, Kirkintilloch, Glasgow, G66 1JB.
Before FSCS can pay compensation, it must be satisfied that an authorised financial services firm is not in a financial position to meet claims against it (e.g. if the firm has failed and entered an insolvency process such as administration or liquidation). FSCS 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 to return money to eligible customers itself.