It means that the FSCS will pay out on successful claims against both companies
The FSCS has declared 15 firms in default, meaning that the Financial Services Compensation Scheme is satisfied that the company can no-longer pay out compensation to people who have received negligent financial advice from the firm.
J. Richfield, which also traded as Sovereign Financial Services is no-longer trading, and is known to have been involved in the sale of HIGH-RISK Carbon Credits and Land-Banking investments, such as Falcon’s Cadnam Plot near the New Forest. The investments were often sold (and sometimes mis-sold) to investors as part of a SIPP: Self-Invested Personal Pension.
Cumulus Investment Management
There were over 10 upheld complaints to the Financial Ombudsman Service about Cumulus Investment Management Limited before the firm ceased trading. Known for having sold a Ukrainian property investment of a similar name, successful claims against the negligent advice of Cumulus will now be paid out by the FSCS.