In a groundbreaking case, HT Legal Ltd has successfully recovered £145,000 in additional pension compensation for a client, marking a significant achievement against a prominent pension provider. The claim followed an earlier payout of £85,000 from the Financial Services Compensation Scheme (FSCS), which still left the client with a substantial shortfall.
The case stemmed from poor financial advice given to the client in 2014, when they were encouraged to move their pension into a Small Self-Administered Scheme (SSAS). Designed primarily for senior executives and business owners, the SSAS was mismanaged and invested in an unregulated collective investment scheme (UCIS), resulting in a devastating financial loss of £145,000.
FSCS Payout Not Enough
Although the FSCS upheld the client’s complaint against the financial adviser, awarding the maximum compensation of £85,000, it did not cover the full extent of the losses. Left with a £65,000 gap, the client turned to HT Legal for further support.
HT Legal’s thorough investigation uncovered critical errors, including the financial adviser’s failure to properly complete pension transfer paperwork. Additionally, the pension provider was found to have neglected its obligations under The Pensions Regulator’s Scorpion initiative, introduced in 2013 to combat pension scams. The initiative mandates pension providers to carry out stringent checks on transfers that lack financial advice, a step that was overlooked in this case.
Pension Provider Takes Responsibility
In response to a formal complaint submitted by HT Legal, one of the UK’s leading pension providers acknowledged their oversight. They agreed to rectify the situation by reinstating the client’s pension to its original value, as though the transfer had never occurred.
Tony Carter, Managing Director of HT Legal Ltd, expressed his satisfaction with the outcome:
“This result is fantastic for our client, who is absolutely thrilled. We are grateful to the pension provider for acting transparently and promptly to resolve this matter. Too often, companies attempt to delay or discourage valid complaints, pushing clients towards costly court battles. This case shows that issues can be resolved quickly and fairly when the right approach is taken.”
Wider Implications for the FSCS and Other Cases
The resolution not only benefits the client but also reduces the strain on the FSCS. The £85,000 compensation previously awarded will now be reimbursed by the pension provider, helping to alleviate pressure on the scheme amidst rising claim volumes.
HT Legal Ltd currently represents claims exceeding £4.8 million against other pension providers in similar cases. These claims have the potential to return £3 million to the FSCS and secure an additional £1.8 million in compensation for affected clients.
A Wake up Call
Tony Carter encouraged others who have received partial compensation for pension claims to come forward:
“If you believe you haven’t been fully compensated, it’s worth investigating further. Many cases, like this one, can result in additional financial redress. Our team is here to ensure you receive the compensation you deserve.”
Book a free call with our claim experts today.
