Claims against Organic Investment Management to be passed to FSCS’s processing team in Nov

Maria Nikolova

The Financial Services Compensation Scheme has concluded that Organic Investment Management Ltd may owe a civil liability to its customers.

The UK Financial Services Compensation Scheme (FSCS) has published an update regarding its investigation into Organic Investment Management Ltd.

In November, claims against Organic Investment Management Ltd will be passed to FSCS’s claims processing team for assessment, the Scheme said in its latest update. This is because FSCS has concluded that Organic Investment Management Ltd may owe a civil liability to its customers – in other words, that there’s the potential the firm could be sued in court.

FSCS says it is currently finalising its approach to how it will deal with these claims, as each claim will need to be considered individually to see if compensation is due. To consider claims against a failed firm, the Scheme must be sure that customers have first tried every approach to claim against any connected firm that’s still trading, and have been unsuccessful.

FSCS is aware that FCA-authorised advisers may have recommended customers invest with Organic Investment Management Ltd. Or they may have recommended transferring existing pensions or investments through a self-invested personal pension (SIPP).

In case the adviser is still trading, one needs to complain to that adviser. If the adviser rejects the complaint, the clients can take their complaint to the Financial Ombudsman Service (FOS).

If, however, the advice came from an FCA-authorised adviser that is currently not trading, the clients should firstly submit a claim to FSCS against the financial adviser.

FSCS considers different factors when calculating losses on pension advice (a claim against financial advisers) compared to discretionary fund manager investments (a claim against discretionary fund managers, in this case Organic Investment Management Ltd). This means clients may be eligible to receive more compensation for any losses by claiming against their financial adviser, compared to making a claim against their discretionary fund manager.

Let’s recall that, according to FSCS’s 2018/19 Annual Report, the Scheme paid a total of £473 million in compensation to 425,760 customers of failed firms during 2018/19.

Read this next

Retail FX

ThinkMarkets expands CFDs lineup to over 4000 ETFs and shares

ThinkMarkets has expanded its service offering by incorporating 2500 new CFDs on shares and ETFs on its ThinkTrader platform.

Retail FX

France regulator warns investors of Omega Pro, Businessempire.fr

France’s financial markets regulator alerted investors that scams related to Omega Pro Ltd are beginning to circulate, with the blacklisted firm capitalizing on the situation to run a range of “unrealistic” offers.

Digital Assets

Web3 platform Grand Time paid $2 million in token earnings to date

Community-driven Web3 platform Grand Time said its offering – which includes a multifaceted platforms and its native token – has been gaining significant traction highlighted by impressive operational metrics.

Institutional FX

FX volumes at MOEX halved in April as ruble gains gorund

Currency trading at Moscow Exchange (MOEX) halted its upward route in April as monthly volumes nearly halved from a month earlier.

Digital Assets

FTX US adds stock trading, fractional shares to crypto platform

FTX US, the American subsidiary of crypto exchange FTX has kicked off stock trading feature to its customers in an effort to compete with popular platforms such as Robinhood and eToro.

Industry News

UK FCA empowered to remove brokers’ permissions in 28 days

Businesses with permissions they don’t need or use, risk misleading consumers. These new powers will enable us to take quicker action to cancel permissions that are not used or needed.

Industry News

CFTC charges $44m Ponzi scheme but millions may have fled to foreign crypto exchange

The CFTC alleged that defendants transferred millions of dollars to an off-shore entity that, in turn, may have transferred funds to a foreign cryptocurrency exchange. None of these funds were returned to the pool.

Technology

Saxo Bank deploys Adenza to address Basel and EBA requirements

The integration of ControllerView will enhance Basel-driven capital calculations and reporting at Saxo Bank in support of the bank’s multijurisdictional capital and liquidity reporting requirements throughout Denmark, Switzerland and UK, with plans to expand into the Netherlands.

Executive Moves

ComplySci appoints CTO, CPO, and CLO to further regtech’s product expansion

ComplySci offers compliance software used by more than 1400 global institutions to identify risk and address regulatory compliance challenges.

<