The Monetary Companies Compensation Scheme has opened its doorways to claims in opposition to two corporations passporting into the UK to advise on pension transfers.
Wellington Court docket FS Ltd and Abana Unipessoal Lda had been each passporting into the UK beneath the Insurance coverage Distribution Directive.
From 19 December 2016, Wellington Court docket had permission from the FCA to hold out sure regulated actions together with advising on investments and pension transfers. Previous to this date, it solely had permission to hold out insurance coverage mediation and insurance coverage distribution actions.
FSCS stated has been working with the FCA and the FOS to analyze the actions of Wellington Court docket.
The FOS has upheld numerous complaints in opposition to Wellington Court docket in respect of its involvement with the switch of shoppers’ pensions right into a SIPPs administered by Guinness Mahon Belief Company Ltd (“GMTC”).
GMTC was declared in default by FSCS on 29 October 2020. Nevertheless, the place Wellington Court docket was concerned in a buyer’s switch into the GMTC SIPP, FSCS has required prospects to first exhaust their rights in opposition to Wellington Court docket through the FOS earlier than FSCS is ready to think about any declare in opposition to GMTC.
As Wellington Court docket has did not fulfill the FOS awards the FSCS stated it’s now contemplating whether or not legitimate claims exist beneath its guidelines in reference to Wellington Court docket’s actions.
Abana was a Portuguese agency that, previous to 31 December 2020, passported into the UK on a providers foundation. Abana’s passport solely lined insurance coverage intermediation within the UK.
FSCS has decided that Abana undertook regulated actions for patrons outdoors of Abana’s insurance coverage intermediation permissions within the UK. These regulated actions included arranging pension transfers, notably into the Avalon & Westerby SIPP.
The compensation physique stated SCS safety might exist for patrons the place Abana organized or suggested a buyer’s pension switch within the UK, and the declare meets the qualifying situations for paying compensation beneath our guidelines as set by the FCA.
Nevertheless the FSCS famous that buyer claims after Could 2014 might not meet the qualifying situations for FSCS to pay compensation. FSCS will write to these prospects whose claims fall into this class.
At the moment the FSCS is simply open to claims in opposition to Abana from prospects who transferred their pension into the Avalon SIPP and never the Westerby SIPP as Westerby continues to be a stay entity.