The Financial Services Compensation Scheme has declared in default Cornwall-based investment firm European American Capital Services Limited which traded as EA Capital (FRN: 401897).

The industry-funded compensation scheme said it had received seven claims against the firm relating to 'general investments.'  

One claim has been upheld by the FSCS, triggering the declaration of default, with another claim rejected and the rest still in progress. None of the claims were believed to be BSPS related.

The firm's registered office was in Penzance, Cornwall, but it ceased to be authorised after July 2023. Some 12 regulated individuals were connected to the firm over its history, according to the FCA register.

Companies House records show the firm (Company No. 401897) is now in liquidation with the liquidation being handled by an east London firm. A winding up order was made this week.

Over the past two months the Financial Services Compensation Scheme (FSCS) - the industry’s consumer compensation safety-net - has declared six other firms in default.

The FSCS said that so far this year it has declared a total of 23 firms in default, with the top five (in terms of reimbursements to clients) so far costing a total of £5.6m in compensation payments.

The default declaration for EA Capital open the doors to compensation of up to £85,000 per case to be paid to clients who have lost money. It is not clear yet what the final compensation bill for EA Capital will be.

Other recently-failed firms, listed by the FSCS, include Green Gem Financial Limited of Chester Le Street; Thorn Investment & Pension Services of Bradford and Sedulo Wealth Management of Lichfield. These firms have all gone out of business and are unable to meet claims, the FSCS said.