Knight Williams declared in default by Investors Compensation Scheme

The Investors Compensation Scheme, the safety net for victims of fraud or poor advice, has declared in default Knight Williams, the financial advice firm, clearing the way for compensation claims worth up to pounds 8m from at least 900 investors.

Knight Williams, which went into voluntary liquidation a year ago, faced a mass of claims from investors, many of them elderly, alleging that they had been mis-sold highly expensive policies and were not properly advised as to their risks. The company was fined pounds 50,000 by Fimbra, its regulator, in 1994 but opposed clients' compensation claims.