HT Legal Ltd has achieved a landmark success for a client, recovering an additional £145,000 in pension compensation from a major pension provider. This follows a previous claim through the Financial Services Compensation Scheme (FSCS), which had left the client with a substantial financial deficit.
After nearly three years awaiting compensation, the client suffered considerable losses due to poor financial advice. In 2014, they were advised to transfer their conventional pension into a Small Self-Administered Scheme (SSAS), commonly utilised by business owners and senior professionals. Regrettably, the SSAS was mishandled, leading to an investment in an unregulated collective investment scheme (UCIS) and resulting in a complete loss of approximately £145,000.
Although the FSCS upheld a complaint against the financial adviser and provided the maximum payout of £85,000, the client was still left with a £65,000 shortfall. HT Legal’s in-depth investigation found that the financial adviser had failed to complete essential pension transfer documentation, indicating a lack of diligence by the pension provider. Under The Pensions Regulator’s Scorpion initiative, launched in 2013 to tackle pension scams, providers are required to conduct thorough checks on pension transfers not advised by professionals—a step neglected in this instance.
In September, HT Legal submitted a formal complaint to one of the UK’s top five pension providers, who swiftly recognised the error and agreed to restore the client’s pension. The provider committed to setting up a new scheme, reinstating the funds as if the transfer had never occurred.
Tony Carter, Managing Director of HT Legal Ltd, stated: “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 resolution not only benefits the client but also relieves the FSCS, as the £85,000 payout will now be refunded by the pension provider, reducing the scheme’s burden amid a rising number of claims.
HT Legal currently has over £4.8 million in claims pending against multiple pension providers under similar circumstances, which 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 added: “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 more information on HT Legal Ltd, please visit their financial claims website at http://claimmyloss.co.uk.
