In October 2021, Forthplus Pensions Ltd, the administrator of The Forthplus SIPP, found itself under investigation and subsequently placed into administration.
The Financial Ombudsman Service received a significant number of complaints regarding Forthplus Pensions Ltd's due diligence, which played a crucial role in the company's downfall. This article delves into the wrongdoing surrounding Forthplus Pensions Ltd, providing up-to-date information and highlighting important factors to consider.
If you were advised to transfer your pension to a Forthplus SIPP, you may have been mis-sold, and this post aims to guide you through the process. Read on to discover the latest facts and figures surrounding this scandal and learn how you can potentially recover your losses.
Mis-Sold Pension Claims Against Forthplus Pensions Ltd:
As of April 20, 2023, investigations by the Financial Services Compensation Scheme (FSCS) into the validity of claims against Forthplus Pensions Ltd are ongoing. The FSCS has been actively liaising with third parties, gathering additional information to progress their investigation.
Moreover, the FSCS has been collaborating with the Financial Conduct Authority (FCA) and the Financial Ombudsman Service to thoroughly examine the activities of Forthplus.
While these investigations are underway, it is essential for individuals who were advised to open a Forthplus SIPP before conducting due diligence to follow the steps outlined below.
Key Points to Consider:
FSCS Claims Process: Although the FSCS is currently accepting claims against Forthplus Pensions Ltd, these claims will not be immediately passed to their claims processing teams for assessment. First, the FSCS needs to establish the claims' eligibility according to their rules, which may take some time.
As a Forthplus customer who received advice prior to opening your SIPP, it is crucial to follow the outlined steps to ensure your claim is processed effectively.
Maximum Compensation: Now that Forthplus is in administration, all complaints are directed to the Financial Services Compensation Scheme (FSCS), which sets a cap of £85,000 on claims. Understanding the compensation limit is essential when assessing the potential amount you may recover.
Planet Pensions Involvement: The FSCS has also extended its acceptance of customers' claims to include Czech Republic-based firm Planet Pensions, formerly known as Square Mile Financial Services. Customers have alleged that Planet Pensions provided unsuitable advice regarding pension transfers into and from the Forthplus SIPP.
This inclusion expands the scope of potential claims related to the scandal.
Brunel and Lewis Connection: Cyprus-based Brunel and Lewis Insurance Advisors, Agents & Sub-Agents Ltd, were involved in providing advice linked to mis-selling cases associated with Forthplus SIPP.
While Brunel and Lewis are no longer authorised by the FCA to engage in regulated activities, their advice prior to May 2020 may be connected to mis-selling cases.
Mis-Sold Pensions and the Cost to Forthplus Pensions Ltd
The mis-selling of pensions is a serious issue that has had significant financial implications for both individuals and companies involved. Forthplus Pensions Ltd is no exception to this, as it finds itself embroiled in a scandal with potentially substantial costs. Let's take a closer look at some statistics and facts related to mis-sold pensions and the financial impact on Forthplus.
Scale of Mis-Sold Pension Claims:
The number of open mis-sold pension claims against Forthplus Pensions Ltd is a cause for concern. According to the Financial Ombudsman Service, a substantial volume of complaints was received, pointing to potential mis-selling practices by the company.
While the exact number of claims is not publicly disclosed, the significant number of complaints contributed to the investigation and subsequent administration of Forthplus Pensions Ltd.
Financial Ombudsman Service's Involvement:
The Financial Ombudsman Service plays a crucial role in resolving disputes between financial institutions and their customers. In the case of Forthplus Pensions Ltd, numerous complaints were filed with the Financial Ombudsman Service, highlighting issues related to due diligence and potential mis-selling.
These complaints triggered further investigations into the company's activities and contributed to its administration.
Cost to Forthplus Pensions Ltd:
The financial cost to Forthplus Pensions Ltd resulting from the mis-selling concerns are yet to be fully determined. However, the repercussions can be substantial. The company's administration itself incurs significant costs, including legal fees, operational expenses, and potential compensation payouts.
As the investigation progresses and claims are assessed, a clearer picture of the financial impact on Forthplus Pensions Ltd will emerge.
To thoroughly investigate the activities of Forthplus Pensions Ltd and the extent of mis-selling, multiple regulatory bodies are working together. The Financial Services Compensation Scheme (FSCS), the Financial Conduct Authority (FCA), and the Financial Ombudsman Service are collaborating to gather information, assess claims, and determine the appropriate course of action.
This joint effort ensures a comprehensive examination of the mis-conduct and its impact on affected individuals.
As the financial cost to Forthplus Pensions Ltd becomes clearer, affected individuals can turn to the Financial Services Compensation Scheme (FSCS) to seek compensation, keeping in mind the compensation cap of £85,000 per claim.
It is crucial for individuals affected by this scandal to stay informed, engage professional advice, and actively pursue their rights to potentially recover their losses. By filling out the contact form below, our team can contact you for a free no-obligation discussion about your situation.