Two consultancies facing claims have failed, according to the Financial Services Compensation Scheme.
June Moneta Wealth Limited, trading as Teal Financial, Empower Wealth Management and NAPIT Wealth, has a claim of improper investment advice against it.
The firm is based in Cardiff and had appointed an FCA Authorized Representative from 2015 to 2018 under its various trading names.
The article continues after the announcement
Oracle Consultants also failed. The company has been trading in Incisive Wealth, Incisive Dental and Incisive Wealth since 2014, and although it is still authorized by the FCA, it was liquidated on October 1 this year.
The company currently has a general investment claim against it, according to the FSCS.
The rescue program recently said 78% of its claims had an element of bad financial advice.
FSCS chief executive Caroline Rainbird told FTAdviser’s Financial Advice Forum in September that bad advice contributes to “a significant amount of damage” in the industry.
“Unfortunately there are a number of bad players – either deliberately or misinformed – entering the industry causing immense damage and ripples in many areas and these are the type of financial advisors we unfortunately see .”
Last month, the FSCS told businesses that processing claims was taking longer than normal.
In a letter to an advisory firm seen by FTAdviser, the FSCS said in late September that it was handling more complaints than usual.
“We are working on these as quickly as possible and on the oldest ones first, but it will take longer than we would like to process your request,” the FSCS told a consultancy firm.
“We are unable to give you an exact time frame, but rest assured that we are working as quickly as possible.”
The consultancy said it was expecting a number of claims submitted in September last year that have not been affected by the FSCS since March 2022.