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FSCS decision strips expat investors rights over mis-selling
| Published: | 21 Jan at 6 PM |
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Thousands of investors and pension savers are now officially denied compensation for blatantly mis-sold funds.
When the news broke that the UK financial watchdog’s investigation into Fast Pensions and its 15 schemes was in suspension, those who’d lost most or all of their retirement savings were devastated and unable to understand why the regulator was failing to take action as regards compensation. The company plus its five associated firms were closed down by order of the High Court in May 2018 for offering some 500 investors risky funds on transfers totalling £21 million. According to a report by the Financial Services Compensation Service, it initially invited claims against dodgy IFAs, but has now stated no action will be taken.
Evidence that advisors were aware of Fast Pensions’ actions hasn’t, apparently, been discovered, and the authority is claiming the IFAs concerned had no reason to question Fast Pension’s use of clients’ savings. The FSCS admits investors received advice from unauthorised as well as authorised advisors, with many illegally cold-called and offered free pension reviews and loans on transfers, sales techniques against which the regulator has frequently warned. Subsequently, monies were placed in high-risk investments, a number of which are now unable to trade. Despite all the indications of a pensions scam, investors cannot now access their savings and cannot take action against IFAs due to the FSCS’s decision.
Given the fat commissions received by IFAs and the techniques used to snare victims, those who’ve lost a lifetime’s savings could well be wondering whose side the regulator and the FSCS are on. Should any of the investors be British expats living overseas, warnings on financial websites are out there, naming names and shaming the unauthorised and often illegally-working IFAs who’re lining their own wallets at the expense of their unsuspecting victims. In the Fast Pensions case, the fact the UK authorities are unwilling to help gives a warning to all to reject any approaches, however good the deal may sound.
When the news broke that the UK financial watchdog’s investigation into Fast Pensions and its 15 schemes was in suspension, those who’d lost most or all of their retirement savings were devastated and unable to understand why the regulator was failing to take action as regards compensation. The company plus its five associated firms were closed down by order of the High Court in May 2018 for offering some 500 investors risky funds on transfers totalling £21 million. According to a report by the Financial Services Compensation Service, it initially invited claims against dodgy IFAs, but has now stated no action will be taken.
Evidence that advisors were aware of Fast Pensions’ actions hasn’t, apparently, been discovered, and the authority is claiming the IFAs concerned had no reason to question Fast Pension’s use of clients’ savings. The FSCS admits investors received advice from unauthorised as well as authorised advisors, with many illegally cold-called and offered free pension reviews and loans on transfers, sales techniques against which the regulator has frequently warned. Subsequently, monies were placed in high-risk investments, a number of which are now unable to trade. Despite all the indications of a pensions scam, investors cannot now access their savings and cannot take action against IFAs due to the FSCS’s decision.
Given the fat commissions received by IFAs and the techniques used to snare victims, those who’ve lost a lifetime’s savings could well be wondering whose side the regulator and the FSCS are on. Should any of the investors be British expats living overseas, warnings on financial websites are out there, naming names and shaming the unauthorised and often illegally-working IFAs who’re lining their own wallets at the expense of their unsuspecting victims. In the Fast Pensions case, the fact the UK authorities are unwilling to help gives a warning to all to reject any approaches, however good the deal may sound.
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