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British Steel: FSCS prepares to declare Active Wealth in default

British Steel: FSCS prepares to declare Active Wealth in default

The Financial Services Compensation Scheme (FSCS) is preparing to declare the IFA at the centre of the British Steel saga in default.

Earlier this month Active Wealth (UK) entered voluntary liquidation.

Now in a statement released yesterday the FSCS said: ‘[We are] aware that Active Wealth (UK) Ltd is in creditors’ voluntary liquidation, and is preparing to declare the firm in default.

‘FSCS is working closely with the Financial Conduct Authority (FCA) to understand the firm’s position.’

Active Wealth found itself at the heart of the saga around defined benefit transfer advice given to British Steel members. The firm was the first to voluntarily agree with the FCA to stop all pension transfer business last November.

Its director was later called to give evidence before the MPs as part of the Work and Pensions Select Committee inquiry into British Steel, however he failed to attend.

Mark Neale, the FSCS’s chief executive, said: ‘We are working as quickly as possible to provide some certainty for customers. We are preparing to start considering claims as soon as we receive them and will provide further updates on our website as more information becomes available.’

Active Wealth has been approached for comment.

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