Herts-based crowd-funding platform Business Agent Ltd, trading as NextCrowd and NextFin (FRN: 669880), has been declared in default by the Financial Services Compensation Scheme.
The move opens the door to ex-customers to claim up to £85,000 per successful claim.
A default declaration by the FSCS, the industry levy-funded safety net, is usually made when a firm is unable to meet all the claims against it.
Business Agent was registered with the FCA in September 2015, registering the name NextFin in December 2019 and adding NextCrowd in September 2023.
NextCrowd’s client base was divided between retail investors, certified high net-worth individuals and self-certified sophisticated investors. by March 2024, the firm had 66 customers who had invested £1.7m in equity and debt offered on the platform.
A review by the FCA exposed “significant regulatory breaches” at NextCrowd. Following a review of the firm’s representations, the FCA issued a Second Supervisory Notice in September 2024, detailing the findings and the restrictions imposed.
Its concerns about Business Agent Limited's operations included:
• Unauthorised handling of client money - the firm held and controlled client funds without the necessary permissions
• ISA regulation compliance issues - the firm received ISA subscriptions into accounts that were not properly set up under the ISA regulations
• Lack of systems and controls - the firm did not implement effective measures to manage potential conflicts of interest or conduct adequate due diligence on investments listed on its NextCrowd platform
• Failure to disclose information - Business Agent Limited did not supply requested details about individuals connected to the firm
• Potential breach of financial promotion rules - the FCA said there may be compliance issues related to the approval of financial promotions
Business Agent entered administration on 8 May 2025 with Louise Longley and Julian Pitts of Begbies Traynor Group appointed as joint administrators. On 27 February this year the FSCS said it had finished its investigation into Business Agent Ltd.
Last Thursday the FCSC said: “Following our last update, we can confirm that on 11 June 2026, FSCS declared Business Agent Limited in default.
“We will continue to assess claims on an individual basis and pay compensation to customers with a valid claim.”
The FSCS has been contacted for more details.