The Financial Services Compensation Scheme has declared London Court Ltd in default a year after the FCA placed restrictions on it.
On July 15, the director of the firm placed the company into liquidation with Rehan Ahmed and Tauseef Rashid of Quantuma advisory appointed as joint liquidators.
The liquidators are expected to write to those who have bought a bond through the company, according to Quantuma's website.
London Court provided bond administration and Isa/IFISA management services through its ‘My Investment Hub’ platform.
The FSCS told FT Adviser it has received 12 claims against the firm all related to investments.
It comes almost a year after the FCA placed restrictions on the firm banning it from carrying out regulated activities for new clients or new investments.
At the time, the FCA said: "We are concerned that London Court Ltd has inadequate systems and controls in place to ensure investments on its My Investment Hub platform are compatible with the needs of the clients to whom investments are distributed.
"We have reviewed investments on the My Investment Hub platform and have serious concerns over the level of due diligence London Court Ltd has conducted."
My Investment Hub's website shows it offered investments in a range of sectors, including property, renewable energy and natural resources.
It also said it offered stocks and shares Isas, inheritance tax investments, enterprise investment schemes and private equity.
The FSCS also placed Donre Advisory under investigation last week (July 16) after it entered liquidation.
The firm entered liquidation only a few months after the FCA imposed restrictions on it over its lack of FCA-approved senior managers.
On July 11, the directors of Donre Advisory Limited appointed Sean Bucknall and Andrew Hosking also from Quantuma Advisory as joint liquidators.
The firm, which was previously known as Basi & Basi Financial Planning Limited, was the parent company of three subsidiaries: PSG Sipp Limited, a UK authorised Sipp operator; Relay Administration Ltd, a pension scheme administrator based in Gibraltar; and MC Holdings (Malta) Limited, based in Malta.
Although PSG is owned by Donre Advisory, it is operationally independent and remains trading.
alina.khan@ft.com
