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Defined Benefit Pension Transfer Claims
Defined Benefit (DB) Pensions promise a lifetime income based on a terminal or average salary. The benefits are generous and even extend to death benefits, so transferring out of a defined benefit generally isn’t advised. Defined benefit pension schemes are typical in public sector organisations or nationalised industries such as NHS, Local Government, Teachers, British Steel, Emergency Services and Miners.
In June 2020, the Financial Conduct Authority (FCA) announced measures to address defined benefit pension transfer issues. Poorly-advised defined pension transfers can ruin retirement plans. TLW Solicitors specialise in helping clients who have been advised negligently to transfer their Defined Benefit Pension into a Self-Invested Personal Pension (SIPP).
The Financial Conduct Authority (FCA), the UK’s regulator of financial institutions, said the pension transfer advice of two directors and two financial advisers put people’s guaranteed retirement benefits at significant risk.
Adrian Douglas, Liam Martin, Frank Oxberry, and Alec Cuthbert operated a transfer advice model which offered The Resort Group’s high-risk Cape Verde hotel development investments.
Introducer firms referred clients to St Martin’s Partners: one of these was First Reviews Pensions Services, a subsidiary of The Resort Group. The FCA reports St Martin’s Partners did not conduct enough due diligence, and that they would have had a “clear indication” of the link between The Resort Group and First Review Pension Services.
Whilst Alec Cuthbert agreed to settle the FCA’s case, Adrian Douglas, Liam Martin, and Frank Oxberr have referred the FCA’s decisions to the Upper Tribunal.
In 2016, St Martin’s Partners were required to stop using the advice model.
Therese Chambers, Joint Executive Director of Enforcement and Market Oversight at the FCA, said:
“People need to be able to trust the advice they receive about their pensions. However, these four individuals put SMP’s customers in danger of giving up guaranteed retirement income for high-risk investments, like overseas hotel developments. They received significant financial benefits in doing so at the expense of their customers.”
With the firm now in liquidation, the lifeboat Financial Services Compensation Scheme (FSCS) has reportedly paid out a staggering £13.4 million in compensation to St Martin’s Partners’ clients due to their financial losses.
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TLW Solicitors’ view of the developments
“If you have transferred your final salary pension, you may have missed out on thousands. These cases can be very complex and sometimes require expert evidence to accurately assess the value of claims.
“If you are concerned about yours or a loved one’s pension, please contact a member of my specialist team for a no-obligation discussion to explore your options. We work on a ‘no-win, no-fee’ basis, so there is no cost if the claim is unsuccessful.”
TLW can help
If you have transferred your workplace pension into a SIPP, our team will review your case to determine if you received unsuitable pension transfer advice. Whether dealing directly with financial services providers or through the Financial Ombudsman Service, that settles disputes between customers and financial institutions, we have extensive experience in dealing with the claims and appeals processes for each.
Additionally, if the financial firm that provided you with advice has shut down or failed, don’t worry – you may still be able to claim compensation through the lifeboat Financial Services Compensation Scheme. If you are concerned that you or a loved one was given unsuitable pension transfer advice, please contact us.
