A man has been awarded more than £33,000 in compensation after being mis sold a high-risk overseas investment that left his pension in tatters. Thanks to an investigation by Claim My Loss and legal action by HT Legal, he has now recovered every penny.
What Went Wrong
Back in 2013, the man, who worked in social media and had no experience with investing, was advised by Sequence Financial Management Limited (also trading as Sequence Pension Solutions and Moneybrain Robo Advice) to transfer out of his Aegon or Scottish Equitable pension.
He was told to set up a Small Self-Administered Scheme (SSAS), which was then used to invest almost his entire pension, nearly £39,000, into an unregulated overseas property scheme: The Resort Group’s Dunas Beach project in Cape Verde.
The investment was high risk and totally unsuitable for someone in his position. He had no investment background, a low appetite for risk, and limited savings outside his pension.
Sequence failed to:
- Check whether the investment was right for him
- Gather proper information about his financial situation and goals
- Warn him about the risks of putting his retirement funds into an unregulated overseas scheme
On top of that, Sequence appeared in promotional material for the scheme and provided reports to other investors, suggesting they had a deeper role than they admitted.
The Outcome
With the help of Claim My Loss, the man’s case was submitted to the Financial Services Compensation Scheme (FSCS), which ruled in his favour. He was awarded:
- £33,302.52 in compensation, the full amount allowed under FSCS rules
- The payment included a notional return to reflect the growth he would likely have seen with a more suitable investment
- A separate £1,992.83 investment with another unregulated firm was not covered, as it fell outside FSCS jurisdiction
“They Recovered Every Single Penny”
The man praised HT Legal and Claim My Loss for their efforts, saying:
“HT Legal said they would do their best to remove my stolen pension and to my astonishment, they recovered every single penny of it! I am extremely grateful to them and thoroughly recommend them to you!”
This case highlights just how vital it is to get the right advice, and that with the right support, it is possible to fight back and recover what was lost.
