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The Monetary Companies Compensation Scheme has launched an investigation right into a duo of related 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) had been each positioned underneath investigation on 9 April.
KBFS Monetary had its authorisation revoked by the FCA because 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 Could 2015 and July 2019.
The FSCS suggested that the place prospects obtained recommendation previous to 1 July 2019, the recommendation was doubtless given by the agency’s Kathryn Brown (FRN: 670840) quite 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 staff had 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 had been suggested to switch out of the BSPS pension between 26 Could 2016 and 29 March 2018.
Corporations had been requested to assessment the recommendation they gave, establish if it was unsuitable and calculate and pay redress to shoppers the place the unsuitable recommendation induced a monetary loss.
As KBFS Monetary has now gone out of enterprise, it’s now not capable of proceed to participate within the redress scheme. Subsequently any new claims in opposition to the agency must be submitted to the FSCS.
It was the newest in numerous 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.
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