The Monetary Companies Compensation Scheme is probing two overseas-based adviser companies which used used EU ‘passporting’ guidelines to advise UK shoppers on pension transfers.
Irish agency Wellington Court docket FS Ltd and Portuguese agency Abana Unipessoal Lda have been each ‘passported’ into the UK beneath the EU Insurance coverage Distribution Directive, permitting them to transact enterprise within the UK.
Wellington Court docket FS has been judged by the FSCS to have failed whereas Albana Unipessoal is beneath investigation at current by the FSCS and has not but been judged to have failed.
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.
The FSCS has been working with the FCA and the Monetary Ombudsman Service to analyze the actions of Wellington Court docket. Though based mostly in Eire, Wellington Court docket had an workplace in Honiton, Devon.
The FOS has upheld quite a few complaints in opposition to Wellington Court docket over its involvement within the switch of shoppers’ pensions into SIPPs administered by Guinness Mahon Belief Company Ltd (GMTC).
GMTC was declared in default by the FSCS on 29 October 2020.
Nevertheless, the place Wellington Court docket was concerned in a buyer’s switch into the GMTC SIPP, the FSCS has required prospects to first exhaust their rights in opposition to Wellington Court docket through the FOS earlier than the FSCS is ready to contemplate any declare in opposition to GMTC. As Wellington Court docket has didn’t fulfill the FOS awards the FSCS mentioned it was 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 coated insurance coverage intermediation within the UK.
The 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 mentioned FSCS safety could 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 its guidelines as set by the FCA.
Nevertheless, the FSCS famous that buyer claims after Might 2014 could not meet the qualifying situations for the FSCS to pay compensation. The FSCS will write to these prospects whose claims fall into this class.
Presently 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 remains to be a reside entity.
• The FSCS has additionally declared one other agency, funding supplier Outdated Park Capital Restricted, as failed this week.
