Legal firm HT Legal Ltd has secured a significant victory for a client, recovering an additional £145,000 in pension compensation from a pension provider. This follows an initial claim through the Financial Services Compensation Scheme (FSCS), which had left the client with a notable financial shortfall.
The client endured nearly three years of waiting for compensation after facing substantial losses due to poor financial advice. In 2014, they were advised to transfer their standard pension into a Small Self-Administered Scheme (SSAS), typically suited to business owners and senior employees. However, the SSAS was mismanaged, leading to an investment in an unregulated collective investment scheme (UCIS) and a total loss of around £145,000.
Although the FSCS upheld the complaint against the financial adviser and awarded the maximum payout of £85,000, the client still faced a £65,000 deficit. HT Legal’s investigation revealed that the financial adviser had failed to complete crucial pension transfer paperwork, exposing a lack of due diligence by the pension provider. Under The Pensions Regulator’s Scorpion initiative, launched in 2013 to combat pension scams, providers must conduct thorough checks on non-advised pension transfers—a procedure overlooked in this case.
In September, HT Legal submitted a formal complaint to one of the UK’s top five pension providers. The provider promptly acknowledged the oversight and committed to restoring the client’s pension, agreeing to create a new scheme and return the funds to their original value as if the transfer had never occurred.
Tony Carter, Managing Director of HT Legal Ltd, commented: “This is an absolutely wonderful result for our client, who is over the moon. We are incredibly grateful to the pension company involved for being transparent and responding quickly with decisive action. This sets a positive example, as all too often companies try to delay or deter clients from pursuing their complaints. This behaviour can lead to escalated legal fees for our clients, especially if matters have to be pursued through court.”
This success benefits not only the client but also the FSCS, as the £85,000 payout will now be refunded by the pension provider, helping to ease pressure on the scheme amid a growing number of claims.
HT Legal currently has over £4.8 million in claims pending against other pension providers under similar circumstances. These cases could result in approximately £3 million in refunds to the FSCS and an additional £1.8 million in compensation for HT Legal’s clients.
Carter further urged: “I urge anyone who has not received full compensation on their pension claim to contact us. You may well be eligible to make a further claim and get the full financial redress you deserve.”
For further information about HT Legal Ltd, visit their financial services claims website at http://claimmyloss.co.uk.