A number of Basset & Gold investors are still waiting for compensation from Gallium Fund Solutions, who they accuse of “dragging their feet” in the process.
They point out it is now three years (1 April 2020) since B&G that used to issue mini-bonds was placed into administration.
These mini-bonds were mis-sold to retail customers in a scandal that is felt to this day.
Gallium was the Financial Conduct Authority-regulated “principal” for B&G.
B&G was also the appointed representative (AR) of Gallium between 1 February 2017 and 28 February 2018.
A retail investor in B&G told Money Marketing that the Financial Services Compensation Scheme (FSCS) has paid out on all claims.
Yet added: “There are number of us awaiting compensation cheques from Gallium who are dragging their feet in paying out.”
The retail investor’s claim has been with the Financial Ombudsman Service (FOS) for over two and a half years and is still waiting for a final outcome.
The investor explained that two investigators from the FOS assessed the claim and found in their favour.
But Gallium questioned both assessments which the investor stated was to “delay matters”.
The retail investor said their claim has a priority marker as they are not able to work due to a mental health problem and they have no income.
The £120,000 they invested in B&G “was almost all the residual funds” they had for retirement.
According to the investor there are roughly six people waiting for compensation cheques from Gallium and rougly five people still waiting for an ombudsman to rule on their case.
The retail investor said that their claim is with Gallium and not the FSCS as they invested on 8 January 2018 and so fell outside the investment window for FSCS protection.
The FOS previously told Money Marketing that complaints are redirected to the FSCS when they relate to the actions of B&G outside of the period of when Gallium served as principal for B&G. Yet, when a complaint is related to the period of when B&G was an AR of Gallium, the FOS will investigate it.
As B&G was an AR of Gallium at the time of this investment, the complaint fell to Gallium and not the FSCS.
The retail investor said: “I have most definitely lost faith in FOS. I invested in B&G as it was FCA regulated and under FOS protection. The FOS have taken two and a half years to deal with my claim. It’s disgusting that they have had my complaint since January 2021 and I don’t feel protected by the FOS.”
They added the wait is causing them “stress and anxiety” as FOS tells them the same thing each time they call: “We cannot give exact timescales but your complaint is in the right department.”
Gallium and the FOS was contacted by Money Marketing for a comment.
