Just under £5m has been paid out by the FSCS in claims against two IFA brothers who ran a £17 million scam.

Russell and Alan Taylor, who ran Norfolk-based investment firm Taylor and Taylor Associates, admitted to fraud at Norwich Crown Court on 6 March and await sentencing.

The Financial Services Compensation Scheme confirmed this week it has paid out a total of £4.9 million for claims against the firm.

The brothers moved the money of clients who wanted low risk investments to a risky fund with another one of their companies - Vantage Investment Group - without telling their customers they owned Vantage.

• Scam adviser brothers plead guilty to £17m fraud as clients speak of 'betrayal'

Police said the brothers used the money they made from clients to fund a "lavish" lifestyle including expensive cars and a private boat.

The FSCS said it has paid out on a total of 176 complaints against the firm, with 102 related to advice on Sipp products.

28 of the claims were connected to unregulated collective investment schemes, and 23 related to investment bonds.

In late 2015 their firm was declared in default by the FSCS. They were once authorised by the FCA but are no longer.

During the trial, clients of the two brothers described, the shock, betrayal and “terrible emotional impact” on their lives after they lost pensions and life-savings. Read the previous story HERE.

The Taylors will be sentenced on 30 April.