The FSCS and Police Scotland are investigating a Scottish adviser firm after it appeared that insurance premiums and potentially investment contributions were not being passed on to providers.

The consumer safety net organisation is working with Police Scotland to investigate Arthur Temlett (trading as Abacus Insurance Consultants) (FRN: 118204) of Dumfries.

The FSCS said it was aware that Police Scotland had been in contact with Arthur Temlett's customers. It will be working with Police Scotland to enable them to inform the public about the FSCS and its claims process.

The firm is known to have provided insurance broking services and is also believed to have provided investments to clients, although the nature of the investments has not been disclosed.

The firm was placed under investigation last week by the FSCS but was restricted by the FCA in January.

Arthur Temlett is a sole trader firm first authorised on 29 April 1988 and has been operating in the Dumfries and Galloway area of Scotland since.

On 21 January, the FCA placed restrictions on Arthur Temlett in response to allegations that insurance premiums were not being passed on to insurers. 

The firm provided a range of insurance broking services and sold motor and home insurance products. Clients are also believed to have purchased investments via Arthur Temlett, the FSCS said.

The FSCS says it is now open to claims from clients and is investigating Arthur Temlett to determine whether claims meet the qualifying conditions for the FSCS to pay compensation. It warns this may take “some time.” The FSCS has not yet established whether or not it will be able to pay compensation.

• The FSCS said that customers who believe they have paid for an investment or insurance policy which does not exist, and have not yet been contacted by Police Scotland, should contact Police Scotland by dialling 101 and quoting crime reference number CR/0470100/24.