Ascot Lloyd may face liability for Newell Palmer claim
The UK’s Financial Services Compensation Scheme (FSCS) has removed Newell Palmer Group from its list of failed firms after it was declared in default on 24 March 2023. The FSCS had received one claim against the firm, which was upheld, but was not linked to the British Steel Pension Scheme. Newell Palmer was acquired by Ascot Lloyd in December 2018. However, a spokesperson for the FSCS said that information received from Ascot Lloyd about liabilities was misinterpreted, and the claim may now pass onto Ascot Lloyd rather than the FSCS.
This is not the first time that the FSCS has backtracked on a default declaration. In December 2022, the FSCS stopped accepting claims against failed advisory firm IFG Financial Services, less than a week after it declared it in default. Since the start of the year, 23 firms have failed with two companies under investigation with the FSCS.
Ascot Lloyd acquisition of Newell Palmer
Ascot Lloyd’s acquisition of Newell Palmer in December 2018 was labelled as a « major » acquisition for the advice consolidator. The FSCS’s decision to remove Newell Palmer from its list of failed firms may have implications for Ascot Lloyd’s liability for the upheld claim against Newell Palmer. IA has contacted Ascot Lloyd for a comment but it did not reply in time for publication.
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Keywords: FSCS, Newell Palmer, Ascot Lloyd, default, claim, liability, acquisition, intermediary market, high-net-worth clients.
