Investment Compensation Due

Investment Compensation Due

by Ashley Clark, Director

An investment scheme run by a firm of Yorkshire accountants which did not have approval from the Financial Services Authority (FSA) and was shut down by the FSA has agreed a procedure for investment compensation.

The scheme ran by Upton and Co.  was essentially a currency speculation vehicle and had taken £5m from nearly 400 investors.

Initially, £3.6m million was recovered for immediate return to investors and the balance of investment compensation refund to be paid by £840,000 monthly instalments, with investors being returned their share in further £10,000 staged payments as money is received.

The FSA have claimed this as a victory and a “fantastic” result for investors claiming that many unauthorised schemes finish with investors getting no compensation at all.

We suggest this is not a victory.  This was a firm of accountants who no doubt had professional indemnity insurance via their professional body and the FSA are lucky that it was a professional firm rather than a real ‘boiler room’ scam, which they appear to struggle with stopping.

That said, it is good news that investors will get their money back.  

Useful links: Read our article on investment compensation limits

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