The Financial Services Compensation Scheme has declared 12 failed regulated firms in default during March and will now consider claims for compensation from clients.

The firms in default include a law firm, several wealth and asset management firms and a number of financial advisers.

One financial adviser firm, Midas Financial Solutions (Scotland) Ltd, is under investigation for allegedly operating an illegal ‘Ponzi’ scheme.

The FSCS is probing the activities of Midas which allegedly advised customers to invest in high-interest, short term deposit accounts which never existed. Instead of money being placed on deposit it was believed to be diverted into a 'Ponzi’ scheme. Many of the investors lived in the Aberdeen area, it is believed.

Midas was an appointed representative of the Sense Network.

Six of the firms declared in default by the FSCS were in London or the South East and three were in Scotland.

Since it began in 2001, the FSCS has compensated more than 4.5m people, awarding payouts of more than £26bn.

• Firms declared in default by the FSCS in March 2020  

Greater London

• Tenebris Realisations Limited (formerly Seymour Pierce Limited) 29/30 Cornhill, London, EC4N 8EL
• Ashley Law Limited 30-32 Staines Road, Hounslow, TW3 3LZ

East of England

• A J Cook (Insurance Brokers) Limited 34 Foundation Street, Ipswich, Suffolk, IP41BN

North West

• New Mersey Motor Co Limited S T C House, Speke Hall Road, Liverpool, L24 9HD

South East

• Octagon Motor Company Limited Jubilee House, John Nike Way, Bracknell, Berkshire, RG12 8TN
• ARLWM Limited t/a Montgomery Financial Consultants Croxtons Mill, Blasford Hill, Little Waltham, Chelmsford, Essex, CM3 3PJ
• Huntsman Hawkes Limited 2 James Whatman Court, Turkey Mill, Ashford Road, Maidstone, Kent, ME14 5PP
• Organic Investment Management Limited c/o RSM Restructuring Advisory LLP, Highfield Court, Tollgate, Chandler's Ford, Eastleigh, Hampshire, SO53 3TY

South West

• Devonshire Asset Management Limited 5 Barnfield Crescent, Exeter, Devon, EX1 1QT

Scotland

• One Wealth Management Limited C/o Murray Stewart Fraser Ltd, The Pentagon Centre, 36 Washington Street, Glasgow, G38AZ
• Midas Financial Solutions (Scotland) Limited 23 Carden Place, Aberdeen, AB10 1UQ
• MacKintosh Cunningham Consulting Limited 335/337 Baltic Chambers, 50 Wellington Street, Glasgow, G2 6HJ