6 January 2021 | Comment | Article by Neil Stockdale
In 2011 Mr G transferred his personal pension plan valued at over £15,000 into a self-invested personal pension (SIPP) with Carey Pensions.
He had been introduced to the prospect of transferring his pension by CLP Brokers, an unregulated firm. CLP Brokers directed our client to invest his pension in storage units operated by a company called Store First Limited. CLP also made representations that the investment had guaranteed returns as well as a ‘buy-back’ option which would allow him to return the investment for the original purchase price should he wish to do so.
Our client subsequently lost his pension with the Store First investment falling to a value of £0 and the remainder of his funds being eaten up by administration fees for his SIPP account.
Hugh James acted on Mr G’s behalf to bring a complaint against Carey Pensions to the Financial Ombudsman Service (FOS). The FOS is able to resolve disputes between consumers and regulated firms where the parties are unable to come to a resolution through a firm’s internal complaints procedure.
The FOS upheld Mr G’s complaint and determined that Carey Pensions were responsible for the losses incurred by our client due to their failure to conduct sufficient due diligence on both our client’s Store First investment and introducing firm, CLP Brokers. Mr G has now received settlement sum of £33,114.42 . Further, Options UK Personal Pensions LLP who acquired Carey Pensions in January 2020 have also agreed to take fully liability for the Store First investment and Mr G therefore, has the comfort of knowing that he will not be liable for any on-going costs relating to the investment.
If you have suffered a loss after transferring your pension to a SIPP, contact the Financial Mis-selling team as we may be able to help with a claim on a ‘no win, no fee’ basis. Contact us today for a free, no obligation discussion.
Disclaimer: The information on the Hugh James website is for general information only and reflects the position at the date of publication. It does not constitute legal advice and should not be treated as such. If you would like to ensure the commentary reflects current legislation, case law or best practice, please contact the blog author.