Nearly 1100 demands for compensation after collapse of ex-West Ham sponsor Basset & Gold

Around 80 investors who lost out from the collapse of minibond firm Basset & Gold are seeking compensation through the financial ombudsman from Gallium, the regulated adviser for which it was a tied agent.

Basset & Gold, which sponsored West Ham United football shirts, collapsed earlier this year, leaving 1800 bondholders facing the loss of their £35 million in savings.  

Gallium is also facing 25 compensation demands through the ombudsman from British Steel Pension holders who blame it for their being switched out of their defined benefit pensions and into poorly performing schemes.

Around £13 million of Basset & Gold’s bonds were sold when the firm was the authorised representative of Gallium, so investors were recommended to pursue it for compensation if they felt they were mis-sold.  

Gallium refused payment and denies liability, saying if it were found culpable, its insurers would cover the compensation.

A further £21 million of the bonds were sold in the last two years when the Financial Conduct Authority granted a direct licence to Basset & Gold’s B&G Finance division.  

Those investors can appeal for compensation from the Financial Services Compensation Scheme which steps in to pay claims for bad advice when a regulated firm has gone bust.