14 May 2018
FSCS declares wealth manager sued client by default
Full Circle Asset Management, a wealth management firm which went into administration after losing a court case brought by a client is among the eight firms declared in default by the Financial Services Compensation Scheme (FSCS).
They went into administration in December 2017, after the court ordered them to pay damages to a client of theirs because they had failed to apply stop losses as agreed. Moreover, they failed to keep their client in assets appropriate to their agreed risk profile.
The FSCS has now declared the firm in default, this means any claims against Full Circle will now be paid from the levy financial advisers contribute towards.
Full Circle was taken to court by David Rocker after his investment of £1.5 million fell by 50%. Mr Rocker alleged the losses were a result of the firm breaching their contractual terms over how they managed his money.
It was also found out later that the Financial Ombudsman Service had 25 complaints against Full Circle that were still waiting to be handled.
Director of corporate affairs at the FSCS, Alex Kuczynski, said:
“FSCS steps in to protect consumers around the UK when authorised financial services firms go bust. This vital service, which is free to consumers, protects your deposits, investments, home finance and insurance.
“We want anyone who believes they may be owed money as a result of their dealings with any of these firms to get in touch as we may be able to help you.”
Other firms also declared in default are Bromsgrove-based Intelligent Financial Planning, Bright Financial Partnership and Welsh firms Strategic Wealth UK and Stanley R Rogers Financial Services.
With Strategic Wealth, the FCA has placed asset retention restrictions on the firm. This means they cannot dispose of, deal with or diminish the value of their assets, without consent from the regulator. The company is now in liquidation.