The FSCS has declared a Scottish adviser firm in default after it appeared that insurance premiums, and potentially investment contributions, were not being passed on to providers.

The firm, Arthur Temlett trading/as Abacus Insurance Consultants, was declared in default this week by the FSCS opening the door to clients with valid claims to seek compensation of up to £85,000 per claim.

FSCS declared Arthur Temlett t/a Abacus Insurance Consultants (FRN 118204) in default after receiving 24 claims, relating to insurance, pensions and investments.

One claim has now been upheld triggering the default declaration. 

The FSCS and Police Scotland are investigating the company after allegations that insurance premiums and potentially investment contributions were not being transferred to providers.

In its latest update this week, the FSCS said that it had assessed a claim for an insurance policy that “does not exist” as eligible for compensation.

The FSCS said: “FSCS has assessed a claim for an insurance policy that does not exist as eligible for compensation. As a result, we have declared Arthur Temlett, trading as Abacus Insurance Consultants, to be ‘in default’ under our rules. 

“Our investigation into claims from customers in relation to the investment scheme is in its advanced stages. These claims remain on hold, but we intend to publish a further update for customers by the end of November.”

In February, the FSCS and Police Scotland revealed they were investigating the Dumfries-based adviser firm. The FSCS said at the time that it was aware that Police Scotland had been in contact with Arthur Temlett's customers.

The firm is known to have provided insurance broking services and is also believed to have provided investments to clients, although the nature of the investments has not been disclosed.

The firm was restricted by the FCA in January.

Arthur Temlett is a sole trader firm first authorised on 29 April 1988 and has been operating in the Dumfries and Galloway area of Scotland since.

The FSCS says it is now open to claims from clients but has warned investigations may take “some time.”

• The FSCS said that customers who believe they have paid for an investment or insurance policy which does not exist, and have not yet been contacted by Police Scotland, should contact Police Scotland by dialling 101 and quoting crime reference number CR/0470100/24. Information is also available on the FSCS website.