Fears over finances of Gallium, adviser behind sales of collapsed Basset & Gold bonds

The financial advice company which authorised collapsed West Ham United sponsor Basset & Gold to sell its bonds to the public has had a “going concern” warning put on its accounts and is facing compensation claims over the British Steel pensions scandal.

Basset & Gold collapsed in April, leaving thousands of mostly elderly investors fearing the loss of all their money.

Kent-based Gallium Fund Solutions was the FCA-regulated "principal" for Basset & Gold and many investors have been advised to go to it for compensation.

Gallium is also at the centre of claims from around 20 steelworkers that it bears responsibility for them losing their money. Their claims are currently going through the Financial Ombudsman Service.

Accounts for the company have a “going concern warning” on it from its auditors due to “issues” about the activities of its authorised representatives.

While not detailing what those issues were, the accounts state: “There is uncertainty regarding the length of time to be taken and costs to be incurred in resolving the issues with the appointed representatives. These matters give rise to a material uncertainty relating to events or conditions that may cast significant doubt about the company’s ability to continue as a going concern.”

The accounts also warned Gallium was being sued for £3.75 million by an “ex-director and 50% shareholder”, Peter Dooley.

Dooley, a Kent dentist, did not respond to emailed requests for comment

Gallium boss Tony Norris said of the British Steel situation: “The matter has been investigated and Gallium is not responsible for any wrongdoing.”

He declined to comment on Basset & Gold pending its “investigations” into the situation but said Gallium denied any wrongdoing.

From February 2017 to June 2018, Basset & Gold marketed its bonds under the supervisory licence of Gallium, acting as its tied agent.