Avalon Investment Services Limited
Avalon Investment Services Limited (FRN 190602) was an FCA-regulated Self-Invested Personal Pension (SIPP) provider that permitted clients to hold their pension funds in a wide range of investments, including non-standard assets. The firm was placed into special administration in February 2016 and formally dissolved in August 2018.
The FSCS investigation into Avalon focused on the due diligence the firm carried out before allowing clients to make specific investments within their pension plans. The FSCS concluded that Avalon had failed in this duty, permitting clients to invest in high-risk, non-standard assets without carrying out the level of scrutiny that was required of a regulated pension provider. Many of those assets subsequently became illiquid, meaning clients could no longer access or sell them.
The FSCS declared Avalon in default in January 2020, having received 213 compensation claims. By early 2020, it had already paid out £264,000 in compensation and was continuing to assess further claims.
Issues / Why You May Have a Claim
Avalon clients who transferred their pensions into the firm’s SIPP structure, often on the recommendation of a financial adviser, had a right to expect their retirement savings would be properly managed and that any investment opportunities would be carefully vetted. Where Avalon’s due diligence failed, clients may have suffered real and lasting financial harm. Former Avalon SIPP clients who have not yet made a claim should seek specialist advice.
