New Model Adviser - For professional financial planners

Register free for our breaking news email alerts with analysis and cutting edge commentary from our award winning team. Registration only takes a minute.

Advice firm with 4 upheld FOS complaints falls into FSCS default

An advice firm which has had complaints upheld over Caribbean property development scheme Harlequin has been declared in default by the FSCS

Advice firm with 4 upheld FOS complaints falls into FSCS default

An advice firm which has had complaints upheld over Caribbean property development scheme Harlequin has been declared in default by the Financial Services Compensation Scheme (FSCS).

Glasgow-based Allan McRoberts, trading as AM Wealth Management Services, had four Financial Ombudsman Services (FOS) complaints upheld against it over advice on Harlequin Sipp investments in 2016.

The advice firm has now been declared in default by the FSCS.

In the FOS complaints, which New Model Adviser® reported on in 2016, the advice firm maintained the firm was just providing advice on the Sipp that would enable the investment in Harlequin.

The clients were referred to AM Wealth Management through an unregulated agent, and AM Wealth Management maintained it was the unregulated agent which advised on the property scheme and it was ‘unfair’ his firm should take ‘responsibility for their conduct’.

In one of the FOS decisions it said: ‘AM Wealth Management referred to a disclaimer that Mr P had signed saying he understood AM was not advising on the suitability of the investment.’

However the FOS ruled, after an appeal from AM Wealth Management, that the advice firm did have responsibility for considering the suitability of underlying investments to be held in the Sipp when advising on the suitability of a transfer.

AM Wealth Management was no longer authorised on the Financial Conduct Authority Register from March 2018.

Yesterday, it was one of eight firms to be declared in default by the FSCS.

Share this story

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
More Content
7277.73 + 47 0.65% 04:35
More Content
More Content

BUSINESS

Adviser Profile: Nicky Wright and Barry Greening of Clear Financial Advice

Adviser Profile: Nicky Wright and Barry Greening of Clear Financial Advice

Nicky Wright has helped Barry Greening overcome personal adversity to transform Clear Financial Advice into a firm that makes the most of its employees’ varied skills

ADVICE

22 Comments Active Wealth (UK) collapse leaves £500k PI mystery

Active Wealth (UK) collapse leaves £500k PI mystery

Our investigation into the collapse of a firm at the centre of the British Steel pension transfer scandal reveals significant holes in the professional indemnity insurance system

twitter_banner

INVESTMENT