With an ever-evolving landscape in the financial world, it's paramount for consumers to stay informed, especially when it comes to their hard-earned money. This article delves into the concerns surrounding Consumer Wealth Limited, an independent financial advisor, and highlights how CP Financial Claims can guide affected clients through this tumultuous journey.
A Brief Overview of Consumer Wealth Limited
Consumer Wealth Limited, bearing the FRN 667910, started its operations as an independent financial advisor on 4 December 2014. Established in Gateshead, the firm took strides in the financial world. However, its operations came to a halt, being dissolved on 25th April 2023. On 7th May 2023, the company lost its regulated status, which means it's no longer permitted to provide regulated activities and products. Previously, Consumer Wealth Limited enjoyed authorisation from the Financial Conduct Authority (FCA) and/or PRA.
The Link to Greyfriars Portfolio Six and The Resort Group
The investments tied to Consumer Wealth Limited took a conspicuous turn when names like Greyfriars Portfolio Six and The Resort Group surfaced. These developments once attracted considerable media attention, especially when celebrities visited the completed Cape Verde resorts.
But not all that glitters is gold. An expose by BBC Panorama's "Pension Rip-offs" unveiled alarming practices. An unregulated pension introducer was found to receive a 7% commission on investments in the hotel property scheme. It was further uncovered that The Resort Group operated a call centre in Derby named Lifestyle Connections. This centre reached out to individuals, pitching a pension review with a consultant.
This seemingly innocuous consultation, operated by First Review Pension Services (owned by The Resort Group), was far from genuine. It emerged that the consultant was unregulated, meaning he shouldn't have given any recommendations. However, covert filming captured this consultant not only offering advice but also endorsing suggestions unsuitable for the clients.
What the Investigation Revealed
Diving deeper into Resort Group Investments, the unregulated consultant gave intricate details about a SIPP transfer with foreign investments in a property fund, purporting to offer an enticing 10% interest annually. He also disclosed that he received a 7% commission on cash investments in The Resort Group.
But here's the kicker: The Resort Group is unregulated. This implies they don't qualify for protection from the Financial Ombudsman or Financial Services Compensation Scheme (FSCS). Yet, as it was propagated by UK regulated advisors that later faced failure, the FSCS conceded to accept claims. Astonishingly, the FSCS disclosed that it had acknowledged 2,500 claims connected to The Resort Group.
Consumer Wealth Limited's Downfall
By November 2019, Consumer Wealth Limited was no longer operational. The Financial Ombudsman Service cited 13 complaints against them for negligent advice in transitioning pensions to Self-Invested Personal Pensions (SIPP). These inappropriate recommendations resulted in many investors enduring significant losses in their pension savings.
Furthermore, Consumer Wealth wasn't acting alone. The company was responsible for 16 appointed representatives, which were trading under their license, amplifying its impact and reach in the financial industry.
Here are the entities that worked under Consumer Wealth's aegis:
- BALDWIN STELLAR SOLUTIONS LIMITED
- C.E.S INTEGRATED SOLUTIONS LTD
- CENTRAL COMPENSATION OFFICE LIMITED
- COMMUFORM LTD
- CURZON ROSE LIMITED
- DOVEHOUSE CARE TRADING LTD
- FINANCIAL HELP UK LIMITED
- GOTHAM CASE MANAGEMENT LTD
- HECTOR STERLING INVESTMENT
- INK FINANCE LIMITED
- KNIGHT MEADE LTD
- MARKET MOVERS (GLOBAL) LIMITED
- PENSION SHIELD LIMITED
- RESPAWN LTD
- SMITH AND ATKINS FINANCIALS LTD
- SN MARKETING LIMITED
- SQ SOLUTIONS LTD
On probing further, it was found that Consumer Wealth Limited was engrossed in steering clients' money and pension funds into risky ventures via a Discretionary Fund Manager (DFM), specifically Greyfriars' Portfolio 6.
This portfolio primarily consisted of unregulated overseas property-based corporate bonds. Unfortunately, some of these faced administration. By 2016, Greyfriars was cautioned by the FCA to cease any further acceptance of money into its portfolio. As a result, Greyfriars entered liquidation, leading part of its clientele being acquired by Hartley Pensions Limited, while QUAI took over some client accounts.
The Impact & How CP Financial Claims Can Assist
For those affected by the dealings of Consumer Wealth Limited and its affiliations, it might seem like a daunting task to reclaim lost funds. But there's hope. CP Financial Claims specialises in navigating such complex scenarios.
Having assisted countless clients through similar predicaments, our team remains poised to offer guidance, ensuring that your claims receive the attention they deserve.
An Ongoing Investigation
While this article presents the current findings on Consumer Wealth Limited and its dealings, it's important to note that this case continues to unfold. As and when we receive more insights regarding Consumer Wealth Ltd, this page will be updated.
In the mean time, please enter your contact details below for a free, no-obligation chat.