PORTAFINA LLP
In June 2021, Portafina LLP (FRN) 497604 applied to cancel its FCA permissions and ceased accepting new customers. Subsequently, in March 2023, the Financial Services Compensation Scheme (FSCS) declared Portafina LLP in default, acknowledging 291 claims of poor advice against the firm. It’s important to note that Portafina LLP is distinct from Portafina Investment Management Ltd, a separate entity with no known regulatory issues.
Trading under the name Portal Financial, Portal Financial Services LLP had 86 of the 91 complaints there were made against the company upheld by the Financial Ombudsman Service (FOS). This was in regards to the financial advice given that put the money of their clients into unregulated collective investment schemes, thus enabling risky investments to be made via self-invested personal pensions (SIPPs).
The involvement of Portafina with the FOS goes all the way back to 2014 where 19 separate cases were upheld against the company. These were all strikingly similar to the most recent complaints in that they mainly involve unregulated schemes and risky investments that were not suitable for its clients. One example saw a client with a define benefit pension sent a mailshot by Portafina that promised them access to a lump sum of cash that was completely tax free.
Promoting unregulated collective investment schemes to certain people is actually restricted. The report produced by the FOS detailed this information and stated that the company’s clients did not fall into the category of investors that could have funds like this marketed to them. The report did go on to say though that Portafina could advice its clients about unregulated collective investment schemes due to the fact that they had taken the necessary steps to ensure that the investments were suitable after performing an attitude to risk assessment and a know your customer investigation. The FOS didn’t though agree with the argument that was put forward by the company in its defence.
You should contact us to take a look at your case if you were advised and invested into Store First, Eco Planet Bamboo, EOS Solar, Venture Oil, Cool Blue Samui, Koroni Fund, Raithwaites Hypa Fund, and Hypa Asia Fund. This is because these investments were only suitable for high net worth individuals or more sophisticated investors. If Portafina failed to stick to the regulations and rules that are in place, you are likely to be entitled to financial redress. However, there are time limitations in place so you need to act fast before time runs out.
