Help re FSCS SIPP provider/advisor claim

[honeybee13]

I've bolded the bits in post #24 that I think are relevant.

 

As I understand it, elsewhere in the TPO report it talks about the yield on your investment needing to be 7.5% or more to have a chance of getting more pension than in the scheme you were in. They weren't confident this could be achieved.

 

And I thought they made the point that for other advice, which seems to include investment funds, you should refer back to 1 Stop. You did say earlier that they recommended the funds.

 

Feel free to tell me that I've got something wrong.

 

HB

[big fish]

Hi The scheme I was in was frozen so manly accrued cost of living if I recall correctly.

 

As I saw it One Stop we’re not qualified to advise so sought advice from TPO. I assume as IFA would there be liability on TPO for not looking into proposal of international investment for SIPP.  The position of TPO isn’t very clear… why would One Stop need info from a second IFA

[honeybee13]

As I read it, I agree, One Stop weren't authorised to advise on pension transfers so they asked TPO to advise on the risks and rewards of transferring out of the scheme. I'm not convinced they advised on investment funds but maybe that's in the paperwork you've posted here.

 

What do you mean about your LGPS benefits being frozen please?

 

HB

[big fish]

The company I worked for opted out of this pension. Employees were encouraged to start a L& G pension as I recall.vPension was then frozen as it were

 

[honeybee13]

It sounds as if the defined benefit scheme was closed, this is common.

 

I'm not sure if it's relevant or not but you would need to look at what your benefits being 'frozen' meant with that particular scheme.

 

I'm concerned that the claims firm think that you might get money back from someone who wasn't responsible but maybe you could go back over the paperwork about who recommended the very specialised funds you were put into. If I can I'll have a look tomorrow but you know your case better than I do.

 

HB

[big fish]

Yes defined benefit scheme closed.

 

I cant see any specific recommendations, it appears to me Lifetime put together the portfolio that was accepted by me. I am puzzled that no one seems to be responsible for financial advice here. FSCS have payed the majority of claims against Lifetime and according to the claims firm TPO also,  there must be something amiss.

[honeybee13]

Can you link to decisions about Lifetime and TPO please?

 

HB

[big fish]

Hi HB

 

Sorry, can you explain linking decisions please.

 

I have attached the original supporting info from the claim against One Stop in 2015 that was upheld. 

FSCS Original Claim.pdf

[honeybee13]

Thank you for the FSCS claim document, it's very well written.

 

As I suspected, they said things about your investment and pensions knowledge that weren't accurate and and used this to say that you were making what is also called an 'execution only' transaction. It looked like an attempt at avoiding responsibility.

 

I also noticed that TPO mentioned you were a medium risk investor and this information obviously convinced the FSCS. I'd say this is one of the worst cases of 'fantasy investment management' that I've seen, especially for a medium risk investor.

 

Turning to TPO and Lifetime SIPP, it's interesting that you think there have been decisions against them and I thought it would be useful if you could show us why the FSCS decided against these firms.

 

Are you sure you need a claims company as you did the last one on your own. What would happen about the £20k fee you mention in post #1 if they didn't help you to win?

 

HB

 

 

[big fish]

Hi HB

 

From FSCS website

 

"FSCS is accepting claims against this firm.

We’re aware that some Lifetime customers were advised by independent financial advisers to transfer existing pensions into a Lifetime SIPP. 

After the pension transfer, customers had their pension funds placed in high risk, non-standard investments. Some of these have since become illiquid, which means they can’t currently be sold or traded.

For FSCS to be able to pay your claim we must prove that Lifetime failed in its due diligence - in other words, did it do certain checks on the non-standard investments that would hold its customers’ pension funds, before accepting them into its SIPP investment portfolio? Did it make sure they were appropriate for a SIPP, and did it identify any potential issues with them? Also, if it did identify potential issues, did it tell the customer?"

 

Re TPO I inputted the company, product, advice date and start date and FSCS inform - based on the information you've given, you can apply for compensation. 

 

I am happy to give these a go on my own and feel the case against Lifetime is the strongest. There are snippets re TPO as you point out. I do feel that these companies  all engaged with one another to facilitate their own gains, with the benefit of sound financial knowledge. I was merely a pawn in the whole exercise, misled and misinformed... awaiting to be taken.

 

Part of my portfolio was a crop growing scheme, see original FSCS claim doc. I have just noted FSCS are accepting claims against Highpoint Trustees Ltd (Citadel Trustees Ltd) company ref no 485414. As with TPO I have details of the agreement but nothing really to prove negligence, although the company must bear some responsibility. If I claim I guess this will have to be for FSCS to decide. It's such a shame that more info regarding SIPP claims is not shared on the GAG, it could prove an invaluable resource for many whose pensions were adversely affected.

 

I haven't thought about what to do with any compensation should I be successful but will certainly make a donation to this valuable resource The CAG

[honeybee13]

I certainly think it's worth a try, presumably there's no cost if you go directly to the FSCS. Get together all the paperwork you can. 

 

Have you signed anything with the claims company?

 

Also you could have a look at the pensions or financial ombudsman website, I forget which, to see if there were decisions against the companies while they were still operating. Simmonds, the thread I linked to further up this one, found a load of decisions against his IFA.

 

If it's possible, it's worth checking if the regulators of the firms at the time insisted that clients should have independent advice before taking out a SIPP. I don't know one way or another but I'm still wondering why 1 Stop or TPO decided to say you had far more knowledge than you did and treated it as execution only. 

 

HB

[big fish]

Hi HB

Thank you

 

No not signed anything with Claims Co

 

Will keep you posted

BF

[big fish]

I think there is a lot of useful info here

 

 

Advising on pension transfers – our expectations

WWW.FCA.ORG.UK

---

This alert highlights our requirements when you provide advice on pension transfers, including advice in particular circumstances.

 

Pasted as a web link but got above?

[honeybee13]

It's usually embedded automatically. 

 

HB

[honeybee13]

There's some good stuff in that FCA link, nice find by you. 

 

One thing that jumps out at me is Section 48 about what the pension scheme you were in should have done when you asked to transfer out. Did this happen?

 

HB

[honeybee13]

Looking again at s48, it could be that it became operational after your transfer but the scheme trustees should have been aware of the new rules that were coming in.

 

Did they get involved at all after you requested a transfer out?

 

HB

[big fish]

Hi HB

 

No there was no further involvement or advice. Only when things started to go wrong... 16/01/2013 One stop wrote saying no longer authorised and regulated by FCA and it all went downhill from there really. I have an RBS bank statement indicating £130 411 . 64 (my pot) was transferred to Lifetime SIPP on 09/02/2012

[big fish]

Another useful link that explains a lot

 

https://www.fca.org.uk/publication/archive/alert-pension-transfers.pdf