The Financial Services Compensation Scheme has paid out over £320,000 to clients recommended unregulated investments almost two years after their advice firm was declared in default.
To date, the FSCS has paid out £320,036.90 on 11 claims against discretionary and advice firm Quintillion Asset Management. It is currently reviewing a further four claims against the company.
Senior management at the Carlisle-based firm set up an unregulated collective investment scheme in 2009, called the Kratos fund, to invest in intellectual property rights. It claimed to target annual returns of 35 per cent.
Quintillion’s permissions were cancelled by the FSA in July 2012 for unpaid regulatory fees and went into liquidation a month later.
The regulator later found that £2m of clients’ funds had been transferred into inappropriate investments, and that director Simon Silva-Peake had allowed a further £659,270 of client money to be misappropriated.
The FCA banned Silva-Peake from working in financial services last month. In August 2014 he was also disqualified by The Insolvency Service from acting as a director for 11 years.
Quintillion managing director Anton Taylor was also banned for 11 years while his father, also a director at Quintillion and group finance director at Kratos, was banned for six years.