September 3rd, 2022 | Latest News
The Government backed Financial Services Compensation Scheme (FSCS) that compensates customers of failed financial firms, recently announced that Smith, Law & Shepherds has failed, meaning wrongly advised clients will be able to make claims. Smith, Law & Shepherds was one of the many companies who advised steelworkers to transfer out of their occupational pension into high risk, unsuitable funds.
The firm has been under industry scrutiny for some time, with their ‘book’ (their clients’ accounts and details) being sold to another firm the same day as the firm went into administration. Earlier this year, there was also a Data Protection 2018 request, which led to an Information Commissioner’s Office investigation and enforcement notice.
Moving from a final salary, also known as a defined benefit, pension scheme is rarely a good idea as it usually means moving to a scheme that is less beneficial. The Financial Conduct Authority (FCA) estimates that almost half of steel workers were given unsuitable defined benefit transfer advice. A huge compensation package has been put in place, with payouts starting in 2023.
“The value of these claims can be significant, with many clients not appreciating how much they have lost until we obtain a current valuation from their previous pension provider. This valuation gives an indication of what the pension would have been worth had it not been transferred. If you are concerned about any pension investments with Smith, Law & Shepherds get in touch with our team, and we can look at the case on a no win no fee basis.”
TLW Solicitors has a dedicated team that deals with defined benefit transfer claims, including British Steel claims. Whilst some of these British Steel pension transfers were made many years ago, you may still be able to claim compensation, so please get in touch for an initial, no obligation consultation.
