Central Markets Investment Management (CMIM) Limited (FRN:475828) has been declared in default by the Financial Services Compensation Scheme (FSCS).

The firm was declared in default on Wednesday when the first claim was upheld.

So far the FSCS has received 59 claims related to pensions, SIPP and investments advice.

The FSCS said the firm was an investment management company whose services included discretionary fund management.

The FSCS first began investigating CMIM in August.

Central Markets Investment Management Limited (FRN: 475828) entered creditors’ voluntary liquidation in early July.

CMIM has seen a string of Financial Ombudsman judgements against it for unsuitable advice provided to clients to invest in property in Cape Verde via a Small Self Administered Scheme.

In one of many similar cases, a Mr A, aged 41, complained to the FOS about the advice given by CMIM in relation to a SSAS investment into a Cape Verde hotel development of The Resort Group which was deemed “unsuitable” for him.

In 2013 Mr A, was cold-called and offered a review of his existing pensions by a company called ‘Your Choice Pensions Limited’, an unregulated firm. He was persuaded that investing in overseas property would provide a better return than his existing £33,000 pension plan with Royal London. A pension transfer and investment was facilitated by CMIM.

The Ombudsman upheld the complaint, initially rejected by CMIM, and ordered the firm to pay compensation for the unsuitable advice and “distress.” caused. In a 2022 ruling the Ombudsman, said: “The only conclusion I can therefore draw from this is that CMIM unlawfully promoted the TRG (The Resort Group) investment to Mr A as part of their advice, in contravention of s238 of FSMA.”

Its LinkedIn profile refers to CMIM as being based in the City of London but Companies House records show the firm’s registered office address was in Leigh on Sea in Essex.

Dominik Thiel-Czerwinke and Louise Donna Baxter of Begbies Traynor (Central) LLP were appointed as joint liquidators in July and are winding up the company.

CMIM's main business was providing Contracts for Difference for retail and professional investors and it was authorised from 2008.