Day Cooper Adams leaves hundreds facing losses

It was only a matter of time before one these compensation firms went under owing money to clients.

Apart from the fact that using them gives little advantage to the claimant it means that the claimant who has a legitimate claim ends up not being fully compensated die to their fees.
This firm took fees up front and apparently FOS paid compensation to this firm which was never passed on.

This where FOS and FSA have dropped the ball.
NO IFA can can handle client money without some very strict regulations and protections in place.

The audit requirements and regulations and panealties are onerous. Yet the FSA / FOS seemed to think it was OK to hand over funds due to a client to a firm that had no client account and had no requirements to have any.

It is not as if this firm was not under a cloud already Tony Hetherington in the Daily Mail had warned about then back in February.   For the full storyuse the link below to the Money managment site.