Retirement savers who lost pension cash in three failed investment schemes have been given the go ahead to make claims from the Financial Services Compensation Scheme (FSCS).
The FSCS has agreed to pay out for investment losses, including pension charges and lost pension growth.
IFAs are to be held liable for giving pension savers advice to switch cash into the investments, which are:
- Green Oil Plantations Limited
- Harlequin Hotels and Resorts
- Sustainable AgroEnergy plc
Compensation claims are limited to £50,000.
IFAs to blame
“We’ve come to the decision that IFAs are responsible for these losses because they cannot talk to clients about the suitability of an investment without considering if the investments are suitable to put into a SIPP themselves.
“We will judge each claim on its merits, but will award compensation if we believe an IFA has given negligent advice that has led to investors making a loss or losing an opportunity to grow their cash.”
Investors who have already received an interim payment need not file another claim, but the FSCS is asking investors who have not filed a claim but who were advised to invest in one of these schemes by an IFA who has not gone out of business to contact them on 0800 678 1100 or 020 7741 4100.
Warnings about bogus advisers – Worldwide
Here are the latest rogue financial firm warnings on the International Organisation of Securities Commissions web site:
- Braemar Capital HK – Denmark
- Web binareo.com and tradersking.com – Canada
- Chikara FX – Canada
Warnings about bogus advisers – UK
Here are the latest bogus financial advisers listed on the Financial Conduct Authority (FCA) web site:
- Pathfinder Capital Limited
Dealing with an unregulated firm
If you buy shares, save money or invest with an unregulated firm, you lose any protection offered by the Financial Ombudsman and the Financial Services Compensation Scheme. Broadly, you have no independent place to complain if the deal goes wrong and are unlikely to win any compensation.
Checking if a firm is regulated
Go to the Financial Services Register to check if a firm is regulated in the UK.
Reporting a suspected bogus adviser