Strathearn Insurance Services Ltd

Failed 18 September 2019

FRN: 514675

You might be eligible for compensation

Strathearn Insurance Services Ltd was placed into liquidation in April 2019.

FSCS is now accepting claims against this firm.

FSCS understands that a number of former clients of Strathearn Insurance Services Ltd invested into property deals offered by a company called IPIN Global. Interested investors became members of this network and were offered the opportunity to invest into property development schemes. Under the schemes investor deposits would be held within a segregated account.

When required, developers would draw down on the investor deposits to finance the developments. A secured exit strategy was offered to investors. The strategy was backed by a Property Deposit Bond, arranged by Strathearn Insurance Services Ltd, with the explicit aim of protecting investor deposits.

FSCS is aware that the Financial Ombudsman Service (FOS) has already considered a number of complaints against Strathearn Insurance Services Ltd, which they have upheld. FSCS has been working with FOS to build an understanding of the activities carried out by the firm. In addition, FSCS has been working closely with FOS to ensure that complaint files are transferred to us.

See our investment compensation limits and their conditions on our Investments page.

  • 24 Sep, 2019

    Claims made against Strathearn have now all been moved to our claims processing teams for assessment. Decisions on these claims will be sent out shortly.

  • 23 Aug, 2019

    FSCS has completed its investigation into Strathearn Insurance Services Ltd (SISL) and has concluded that we may be able to pay compensation for claims.

    FSCS doesn’t protect direct investments into property; however, we may protect insurance products.

    The documentation SISL provided to its customers has been key to our investigation.  We have concluded that SISL carried out regulated arranging and owes a civil liability to customers in this regard, meaning that we may be able to pay compensation.    

    Specifically, the key features document (KFD) that SISL provided to customers was misleading. It appeared to guarantee that, in the event of a contractual default (i.e., IPIN’s failure), customers’ deposits into the property scheme would be 100% protected by a property deposit bond (PDB).  The PDB, however, was provided by an undisclosed offshore insurer that was not protected by a compensation scheme, such as FSCS. The insurer also failed, making the supposed protection for customers worthless.   

    The information SISL provided gave customers the impression that their property deposits were protected in all scenarios and that the investment was risk free, which was clearly not the case.

    Claims received against SISL will shortly be passed to FSCS’s claims assessment teams to be considered for compensation. The approach for compensation will be based on our insurance methodology because customers’ losses stem from the misleading information provided about the PDB, which is an insurance product.  Customers with valid claims will, therefore, receive compensation of 90% of their investment deposit.

    We are aware that the Financial Ombudsman Service (FOS) has previously considered some claims against SISL, but FSCS is required to assess claims and calculate compensation in line with our own rules.  In this case, the rules that apply are FSCS’s rules for claims against insurance brokers, which limit compensation to 90%.

  • 14 Jun, 2019

    FSCS’s investigations into Strathearn Insurance Services Ltd are continuing. Right now, our legal team are looking at the activities that Strathearn carried out to identify the specific regulatory breaches that may have occurred.

    FSCS understands that many former clients of Strathearn had active complaints with the Financial Ombudsman Service (FOS) at the time the firm went into liquidation. We've been working closely with the FOS to make sure FOS complaint files are transferred to FSCS. Once FOS complaint files are received, FSCS will contact customers and advise them on what they should do next.


  • 20 May, 2019

    Although FSCS is accepting claims against Strathearn Insurance Services Ltd (Strathearn), claims have not yet been passed to our claims processing teams for assessment. This is because we are carrying out initial investigations into the activities of Strathearn.

    Firstly, we need to establish whether there are ‘protected claims’ against Strathearn. For this to happen we need to know that Strathearn 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 documentation which Strathearn provided to customers. This analysis will help us reach a view on what regulatory breaches may have occurred.


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