The Financial Services Compensation Scheme has declared Staffordshire-based Colbourne & Company in default.
According to the FCA Register the firm has been authorised since December 2001.
However, it had requirements and suspensions placed upon it by the regulator in June 2022.
In the same month the regulator issued a statement that Colbourne & Company had for a number of years been carrying out regulated activities outside its Part4A permission.
During this time, the regulator alleged the firm had taken unauthorised fees of at least £218,000 from a number of its retail clients.
The lifeboat scheme told FT Adviser it had received five claims with one upheld and four in progress.
These claims were in relation to general investment and Sipps with the FSCS confirming there was no connection to British Steel.
This comes after the lifeboat scheme declared Staffordshire-based Pro-Synergy Wealth & Tax Management Ltd in default earlier this month (September 20).
The lifeboat scheme told FT Adviser it had received 11 claims in total against the firm.
One of the claims had been upheld and 10 were rejected all regarding investment advice.
alina.khan@ft.com
