The FSCS has declared in default failed IFA Nexus Independent Financial Advisers (FRN 584769) of Fareham, Hants, which was run by high-profile founder Kerry Nelson.
The FSCS said it is now accepting claims against Nexus Independent Financial Advisers Ltd.
It said: “We’ve now completed our investigation into Nexus Independent Financial Advisers Ltd and soon we’ll be passing on claims to our assessment team for processing. We’d like to thank customers for their patience throughout our investigation.”
It added that it can’t confirm exactly when it will process any individual claim.
The lifeboat fund said: “FSCS is currently working closely with the administrators while we investigate whether customers who have submitted claims to FSCS are eligible for compensation under our rules.”
Ms Nelson was a high-profile adviser often quoted in the media and appearing on industry round tables as recently as 2022, the year before the firm failed.
In that year she won the Personality of the Year Award from industry publication Money Marketing and also won two Women in Financial Advice awards in the same year from another industry title, Professional Adviser. The awards were for 'Woman of the Year - Investment' and 'Financial Adviser of the Year - South East.'
The FCA stepped in at Nexus at the start of 2023 after concerns about client money irregularities at the firm totalling £2m. The FCA said it intervened because of “very serious concerns.”
The watchdog said it believed that the firms’ sole director may have deducted sums from clients without authorisation or without FCA knowledge.
In its Supervisory Notice, the FCA said it appeared that the firms’ director may have taken a total of £2.072m in unauthorised and/or inappropriate withdrawals from clients of the firms. It said the conduct appeared to relate to multiple clients and to have spanned at least the period from September 2021 to December 2022.
Nexus was placed in administration on 26 January 2023 with Nicola Layland and Carl Faulds of Leonard Curtis Business Solutions Group appointed as the administrators.
Ms Nelson was declared bankrupt in November 2023 after Nexus fell into administration.
The FSCS has declared six financial advisory firms as failed so far this year. The most recent was Scottish financial adviser firm, G60 Limited (formerly known as Pacific Shelf 989 Limited), which was based at Perth Airport.
Other failed firms include Hanson Financial Partners (FRN529347), a Financial Planning firm based in the North East. The firm was based at Boldon Business Park, Boldon Colliery, Tyne and Wear. Hanson said it offered all types of Financial Planning as well as advice on areas such as mortgages and equity release.
Other firms recently declared in default by the FSCS include Donre Advisory Limited (FRN: 513993), based in the City of London and formerly known as Basi & Basi Financial Planning Ltd, and MHMW1 Ltd, formerly M L Robinson Financial Advice Ltd (FRN 575253) which was based in Cwmbran, Gwent, Wales.