Surrey-based wealth manager Sigma Asset Management Ltd (FRN 225526) - which was responsible for 18 appointed rep firms - has been declared in default this week by the Financial Services Compensation Scheme.
The decision opens the door to ex-clients who have lost money to claim up to £85,000 per successful claim as the firm is unable to pay compensation itself.
The firm was dissolved in 2020 and ceased to be authorised by the FCA after July 2018.
Sigma was based in West Byfleet, Surrey, and was responsible for 18 Appointed Representative firms and at one point had 45 regulated staff of its own.
The FSCS has received five claims so far against Sigma relating to pensions advice, one of which has been upheld triggering the default declaration.
Among the appointed rep firms connected to Sigma were Aberdeen McGee Financial Management Ltd, CFG Financial Planning Ltd, Jon Charles IFA, TR Youngs Financial Planning Ltd, Toptax Financial Services Ltd and WD Financial Planning.
CF1 directors at the firm included James Randall, Mark Richard Sutton,Paul James Howard, Peter Geoffrey Angell, Mark Bryn Williams, Stuart Howard Aberdeen, Nicholas Green, Julian Craig Tinworth Milner, John Vaughan Radford, Barrie Peter O’Leary and David John Rimmer,
The FSCS is the industry-funded safety net which compensates consumers who have lost money when regulated financial services firms fail.
The FCA has recently tightened up on the regulation of Appointed Rep firms.
• Sigma is not connected to any other firms with similar names. The firm in default is: Sigma Asset Management Ltd (FRN 225226) based at The Stables, Parvis Road, West Byfleet, Surrey KT14 6EY.