After over 5 years without being regulated, the Financial Services Compensation Scheme (FSCS) has officially declared PCM Asset Management, a Northumberland-based firm, in default following a single upheld claim concerning pension advice. The firm, which lost its Financial Conduct Authority (FCA) authorisation on 15 March 2019, is no longer permitted to conduct regulated activities and has ceased trading.
According to the FCA Register, PCM Asset Management previously held regulatory approval but is now listed as unauthorised. The FSCS confirmed the firm’s default status, enabling eligible clients to seek compensation. Potential claimants are advised to use the FSCS’s online eligibility checker to assess their options.
An FSCS spokesperson told Professional Adviser: “PCM Asset Management was declared in default today after we upheld a single claim related to pension advice. This is the only claim received so far, and it is unrelated to the British Steel Pension Scheme (BSPS).”
Limited Claims but Growing Concerns
Currently, the FSCS has received just one claim against PCM Asset Management. The declaration of default allows the scheme to process compensation for eligible clients, though no further claims have been reported at this stage.
The collapse of PCM Asset Management adds to a rising number of advisory firms facing repercussions for pension advice shortcomings. In a similar case, the FSCS declared Colchester-based Solutions Financial Services, operated by Mr G and Mrs P Speller, in default on 24 April. That firm faced five claims related to pension advice, also unrelated to BSPS, with the FSCS noting it had ceased trading.
The FSCS encourages affected clients to explore compensation eligibility through its online tools, as it continues to address claims against failed firms.
Our thoughts
If you have been affected by pension mis-selling from a financial adviser like PCM Asset Management, timing is everything.
We are incredibly lucky in the UK to have the FSCS available to us when firms fail however when claims exceed £85,000 relying on the FSCS alone may not ensure you get the full redress you are entitled to.
It is worth considering that a £50,000 pension 10 years ago could well be worth £100,000 today (based on 8% per annum average growth with compounded interest).
Financial Advisers have professional indemnity insurance, and those insurances can often still protect clients up to 6 years after the firm stopped being regulated. Unlike the FSCS, professional indemnity claims are not limited to £85,000… however pursuing these types of claims is not always straight forwards and could require legal action.
As regulated solicitors we have an obligation to value client risk vs reward. We see legal action as an absolute last resort. To coin a phrase “the juice has to be worth the squeeze” however one thing is certain, our no-win no-fee service allows you to investigate fully with no financial risk and we will not engage in that journey with you without spelling out our costs in detail if were successfully get your claim upheld. We offer a free 30 minute consultation and offer free guidance, following which you can choose to either attempt to claim yourself, shop around, or appoint us to manage your claim. So, if you are looking for help and guidance, why not book a no-obligation call today?
