IFA Berry Birch added to 'black list'

FORMER clients of Berry Birch and & Noble, one of the country's best known firms of indepedent financial advisers, have been given the green light to claim for compensation.

After investigating the case, the Financial Service Compensation Scheme has added the firm, which is currently in liquidation, to its list of firms in default. The move clears the way for those who believe they received poor advice to seek redress of up to £48,000.

The FSCS, however, has still to make a decision on David M Aaron, a firm of IFAs that folded after urging investors to back disastrous precipice bonds. David Aaron was the first IFA firm to receive a lifetime ban from operating by the Financial Services Authority, the City watchdog, last week.

Firms such as Berry Birch and David Aaron have been heavily criticised by conumer groups for trying to dodge their liabilities by winding up the company and leaving investors to fight for limited compensation paid for by the rest of the industry.

The declaration of default is the final part of a process where regulated firms are deemed by the FSCS to be unable to pay claims for compensation. This is usually because they have insufficient assets because they have folded.

The FSCS is paid for by a levy on financial services firms who ultimately pass on the cost to their customers via higher charges, hence criticisms from consumer groups.

Consumers who believe they may have a claim, should contact the Scheme on 020 7892 7300. Fifteen other firms were added to the default list:

East
Philip A Barnes (Insurance Brokers) Limited (now Philip A Barnes Limited), Bedford, MK40 3EU.
Senior Financial Services Limited, Halstead, CO9 1JE.

Midlands
David William Pollock and Patricia Woodcock trading as Monks Financial Services, Bardney, LN3 5UA.
Fiscal Marketing Limited, Sutton Coldfield, B72 1UH.

North East
Brian Sutherland & Company, Cleveland TS20 1DN
Kelden & Company, Leeds, LS1 4LT.

Scotland
Andrew Greenwood formerly trading as A Greenwood Insurances, Glasgow G11 7DR.
Downes Marshall Limited, Glasgow G3 7XH.
Norman Baird formerly trading as N B Associates, West Lothian, EH47 0QX.
SIS (Life and Pensions) Limited, Isle of Lewis, PH2 0NX.

South East
Anderson Stokes Financial Services Limited, Bracknell, RG12 3BJ.
Arnold Long & Company Limited, Bexleyheath, DA6 7AU.
Berry Birch & Noble Financial Services Limited - In Liquidation, West Wickham, BR4 0PS.
Leslie Hamilton trading as Les Hamilton & Associates, Totton, SO40 3DF.
Newgrove Financial Services Limited, Wokingham, RG10 1TH.

Yorkshire and Humberside
Barry Richardson trading as Barry C Richardson Insurance Services, Sheffield, S11 7ED.