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27 August 2021 | Comment | Article by Neil Stockdale

DAC Pensions in default…


The small self-invested personal pension provider, DAC Pensions, has gone into liquidation and is now classed as in default by the Financial Services Compensation Scheme (FSCS).

On 24 August 2021, the Financial Conduct Authority (FCA), as the industry’s regulator, issued a Supervisory Notice in which it confirmed that DAC Pensions failed to carry out adequate due diligence in respect of two unregulated introducer firms which were based in Ireland and Cyprus.

These firms did not have the relevant authority to provide pension advice in the UK and held only European Economic Area (EEA) cover.

It is reported that their failings led to DAC Pensions wrongly accepting over 600 new clients with assets of over £20million and allowing them to invest in high risk portfolios which included unregulated collective investment schemes, sometimes known as pooled investments, which the FCA has long since said are not suitable for average consumers: Unregulated collective investment schemes | FCA.

DAC Pensions is now writing to its clients advising them that they should not have accepted their pensions. Have you received a letter? Contact our financial mis-selling team for a free initial consultation to find out how you can claim.

Author bio

Neil is head of the firm’s group actions and financial mis-selling teams, specialising in handling claims for financial mis-selling relating to energy contracts, pensions, investments and timeshares.

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.

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