The FSCS has paid out about £564,000 in compensation for all claims against three wealth management firms whose clients reportedly included Premier League footballers.

One of the businesses, Formation Asset Management, has been put in default by the FSCS, it was announced yesterday. It was among a newly published list of 24 failed firms.

The firm was run by advisers David McKee and Kevin McMenamin, who specialised in advice to professional footballers and other sporting professionals.

The Sunday Times reported in November that around 100 former Premier League footballers advised by Mr McKee and Mr McMenamin were set to suffer combined losses of up to £100 million.

Mr McKee and Mr McMenamin have previously stressed through the media that they deny any wrongdoing. The Sunday Times says its article is subject to a legal complaint.

In a previous trade press report, a statement attributed to Mr McKee and Mr McMenamin said they were “adamant that without exception their clients were always advised on the suitability and risks of the schemes and advised that these investments needed to be part of a balanced portfolio”. It's been reported that the investment schemes included film and property ventures.

The £564,000 FSCS compensation pay-outs related to:

• John Murray & Company (Scotland) Limited (now Kingsbridge Advisors Limited)

• KFS Holdings Limited

• Formation Asset Management Limited (formerly Kingsbridge Asset Management Limited)

None of the claims that comprised the compensation payouts to date were in connection with tax schemes, the FSCS said. 

John Murray was declared in default in 2003, and KFS, was declared in default in January this year, the FSCS told FP Today.

Formation Asset Management was dissolved on 11 November 2015, according to Companies House, after winding up commenced on 14 September 2010.

In total, the FSCS placed 24 companies across the UK in default this week. Consumers could now be refunded the money they lost as a result of their dealings with these firms.

The companies placed into default by the FSCS were:

• Omega Consulting (Norwich) Limited, Norwich,
• Enys Road Limited, London,
• Porta Verde Financial Services Limited London,
• Gallimore Associates, Nottinghamshire
• Gallimore Associates Limited, Nottinghamshire
• Citri Limited, Gateshead
• Watchovia Limited, Doncaster
• W.B.Tidley (Financial Services) Limited, Cheadle,
• Formation Asset Management Limited, Cheshire
• FMG Wealth (UK) Limited, Liverpool,
• Owen James Freeman, Stockport,
• Spece and Spence Limited, Edinburgh,
• Daniel Marshall Associates Limited, Hove, East Sussex,
• Private Portfolio Management Limited, Horsham, East Sussex,
• Platinum Wealth Group, Lancing, West Sussex,
• Thomas Hall Partnership, Cobham, Surrey,
• Hemdale Financial Management Limited, Bradford,
• Hirst & Company Limited ta Red Planet Financial Solutions, Leeds,
• Nicholas Welsh and Co Limited, Rodden Frome Somerset,
• Barnes Independent Financial Advice, Christchurch, Dorset,
• Ian Ferrell Associates Limited, Swansea,
• Policies Checked Limited, Chepstow,
• Mortgage Finder Limited, Belfast, County Durham