Surrey-based financial adviser Independently East Limited (FRN 488046) has been declared in default today by the Financial Services Compensation scheme.

The FSCS said it had so far received 10 claims against the firm, relating to general investment advice.

One claim has now been upheld by the FSCS, triggering the default declaration. A default declaration is triggered when a firm cannot meet claims against it.

The firm, based in Walton-on-Thames, was suspended by the FCA in 2023 after a number of concerns, including that a client’s money was not invested into a bond, as it should have been.

The firm, which is in liquidation, has one director listed on the FCA register, Steven Brian East. He is listed on the register as SMF1 chief executive.

The default declaration by the FSCS opens the door to ex-clients to submit claims of up to £85,000 per claim. From 1 December the limit on FSCS claims will rise from £85,000 to £120,000.

The firm was regulated by the FCA and authorised to provide financial advice.

Independently East Ltd (IEL) entered compulsory liquidation on 11 September 2023 following an application made by the FCA. The Official Receiver has been appointed as liquidator.  

In February 2023 the FCA took action against IEL, including freezing the firm’s bank accounts and cancelling its permissions to carry out regulatory activities.

At the time, the FCA said it had taken the action against the firm for, “failing to engage with us in an open and cooperative way.”

The FCA said: “Our concerns with Independently East include whether it can be effectively supervised and holds appropriate resources. It has not provided us with the information we requested about its clients, financial position, or a Financial Ombudsman Service award it was due to pay out.

“The outstanding Financial Ombudsman Service award is for an upheld complaint by a consumer who paid £70,000 into Independently East’s business account. The consumer understood these funds would be used to invest in a bond.

“We have looked into this investment and found no evidence to suggest that the money transferred by the consumer to Independently East was invested in a bond or any other form of investment. It also appears that some of the consumer’s funds were transferred to a personal account of the director.”