Property fund claims help push 24 firms into default

Advice to invest in a troubled unregulated overseas property scheme has helped push 24 firms over into failure, the Financial Services Compensation Scheme (FSCS) has said.

The FSCS said it has received around 130 claims against two dozen defaulted firms in relation to advice to invest in the Stirling Mortimer property funds. A firm is declared in default by the FSCS if it is unable, or likely to be unable, to pay claims against it. Often claims against a firm are referred to the FSCS by the Financial Ombudsman Service - which deals with complaints against active businesses - once it becomes clear that the firm will not be able to pay redress it is deemed liable for. The cost of compensation to investors via the FSCS is paid for by the industry in the...