KBW Associates Ltd

Under investigation since 01 December 2018

FRN: 401675

You might be eligible for compensation

FSCS's position

KBW Associates Ltd was placed into liquidation in November 2018. FSCS is accepting claims against this firm.

KBW Associates Limited (KBW) was a firm based in the United Kingdom that operated as an Discretionary Fund Manager (DFM). KBW provided broking and trading services on a managed, advisory and execution-only basis to its clients. Through KBW, investors were given access to markets such as foreign currency exchange, contracts for differences, futures and options.

KBW was authorised by the Financial Conduct Authority (FCA). The FCA placed certain rules upon KBW that applied to the financial services activities that it carried out. Specifically KBW’s permissions only allowed it to deal with professional clients and eligible counterparties. The high-risk nature of some of the investments offered meant that some may not have been suitable for retail or unsophisticated investors.

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  • 19 Aug, 2019

    FSCS is continuing its investigation into the practices of KBW Associates to determine whether claims exist in relation to the firm’s practices. Our investigation is focusing on the relationships between KBW Associates and other authorised and unauthorised firms involved in transferring customers’ pensions. FSCS is also considering the level of commission that KBW Associates and associated firms took.

    FSCS is accepting claims involving the firm, but any claims received will not immediately be passed to our claims processing teams for assessment. Firstly, FSCS needs to establish whether there are protected claims involving KBW Associates. For this to happen we need to know that the firm owes a civil liability to customers in respect of investment services it provided.

    In our previous update we had targeted to complete our initial investigations by the end of August 2019. Due to the nature of this investigation, however, it is taking longer than we had anticipated. We hope to complete our initial investigation by the end of November 2019.

  • 18 Jun, 2019

    Although FSCS is accepting claims against KBW, claims have not yet been passed to our claims processing teams for assessment. This is because we are still carrying out investigations into the activities of KBW.

    Firstly, we need to establish whether there are ‘protected claims’ against KBW. For this to happen we need to know that KBW owes a civil liability to customers that would enable them to sue the firm in court.

    Importantly, this civil liability must be in connection with a regulated activity carried out by the firm. Currently our investigations are focussing on the activities carried out by KBW and whether the firm was acting outside its permissions.

    In addition we're looking into the business model KBW operated. We're particularly interested in the relationships KBW had with other authorised and unauthorised firms. This analysis will help us reach a view on what regulatory breaches may have occurred.

    We hope to have concluded our initial investigations by the end of August 2019, at which time claims will be passed to our claims processing teams for assessment.


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