Yahoo Finance British Steel pension and Basset & Gold-linked adviser Gallium falls into losses and admits complaints have been made
Gallium Fund Solutions Group, the financial adviser facing compensation claims over the British Steel pensions scandal and the collapse of minibond firm Basset & Gold has fallen into losses but stressed any liability due will be covered by its insurance.
Gallium was the Financial Conduct Authority-regulated “principal” for Basset & Gold, the West Ham United shirt sponsor which went bust in April. That meant B&G could market its bonds under Gallium’s supervisory licence as a tied agent.
Thousands of mostly elderly savers fear losing all of their money from the collapse of the minibond firm, which transpired to have been using their money to fund subprime personal loans from a lender that also collapsed.
Many of the investors were advised to seek compensation from Gallium but several have told the Evening Standard their claims have been rejected.
In its financial accounts, Gallium confirmed it was dealing with such claims but said: “It is the directors opinion that there will be no liability due payable by Gallium Fund Solutions Limited. However, should such liability occur, professional indemnity insurance will full cover any costs…”
It expects its only hit will be from the £25,000 excess fee.
Its accounts state that it has had “a number of complaints” made against it to the FCA. “The company have been fully cooperative in respect of these matters and is working to resolve these issues alongside the FCA,” it said.
The Financial Ombudsman Service is believed to have around 25 open complaints regarding Gallium’s involvement in the British Steel Pension Fund.
Gallium boss Tony Norris has previously denied all wrongdoing in both the British Steel and B&G cases.
Losses in the year to 30 June were £11,020 against a profit in the previous year of £70,543 for which it blamed Covid-19’s effect on its clients.
It said it was optimistic that clients were developing more property investments.
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