The pension liberation war between regulators and rogue advisers has hotted up again with new court action to seize the assets of four schemes.
The Pensions Regulator (TPR) is concerned four pension schemes linked to financial adviser Martin Brown are pension liberation or unlocking schemes.
Brown is also director of IFA firm Turnberry Wealth Management in Ayr.
TPR has appointed Dalriada Trustees to run Marley Administration Services, also directed by Brown.
Dalriada has frozen the assets of the four Marley pension schemes.
Alleged pension liberation fraud
Sean Browse, of Dalriada Trustees, said: ‘The original appointment by TPR of Dalriada to these schemes was due to suspected pension liberation fraud.
“We were appointed to six schemes but two had no members, so four of the schemes are suspected of being pension liberation schemes. That was the principal reason for the action.’
Another pension adviser recently involved in TPR High Court action is Charles Conway. The Financial Conduct Authority lists him as a director of Future Financial Strategies, of Motherwell, an appointed representative of Turnberry Wealth Management.
In May, TPR appointed Dalriada Trustees to run 10 suspected pension liberation schemes linked with Conway, who is a director of Motherwell-based IFA Future Financial Strategies, and Conder Administration.
Dalriada said: “There are concerns that the schemes have been used as vehicles for pension liberation.”
Conway worked with Motherwell-based IFA Westwood Independent Financial Planners from 2007 until 2011. The firm is now in liquidation.
Warning over early access to pensions
In 2011, the Financial Services Authority took action against Westwood over the sale of geared traded endowment policies.
Only last week, the FCA issued a warning to consumers about pension liberation, insisting they should challenge any IFA recommending they should move a pension to access funds while under the age of 55.
The TPR is also challenging the legality of pension liberation schemes in the High Court and hopes to win a ruling outlawing the practice in October.
One pension liberation firm was deemed to run illegal unlocking schemes last year in the High Court, but the decision did not set a precedent for other suspected fraudsters.
Police have also raided a call centre in London in May 2013 which was thought responsible for hundreds of thousands of cold calls and texts to mobile phones inviting retirement savers to early access their funds.
Online traffic analysts reckon the number of spam pension unlocking emails has dropped by around 80% since the raid.
