Quilter Private Client Advisers (Quilter) acquired Prescient Financial Intelligence Limited (Prescient) at the start of 2020 and has since announced they are setting aside £1.7m for possible defined benefit pension transfer claims.
Financial industry publication, Citywire New Model Adviser, reports that Quilter’s recently published accounts reveal that the acquired company may have provided unsuitable pension transfer advice leading to the provision.
Prescient client advice review
+ −A Quilter spokesperson said of the decision:
‘We decided to review the pre-acquisition DB pension advice given to Prescient customers to ensure it was appropriate at the time. We see the safeguarding of good customer outcomes as paramount. As part of our standard practices, we periodically review the advice provided by advisers to ensure its appropriateness.’
So far, 18 cases have been identified where unsuitable defined benefit pension transfer advice may have been given to Prescient clients, leaving the door open for compensation claims.
Quilter’s other defined benefit concerns
+ −In 2019 Quilter took over another company, Lighthouse, following which Government backed watchdog, the Financial Conduct Authority (FCA) instructed the firm to review over 250 pension transfer cases relating to the British Steel Pension Scheme (BSPS).
Again, this followed concerns relating to inappropriate defined benefit pension transfer advice from the acquired firm. Quilter’s redress bill for those clients could reach over £30m.
Defined Benefit (Final Salary) Pensions
+ −Defined benefit pension schemes are a very solid and dependable source of income for retirement and there must be an extremely good reason to transfer from them into a riskier type of investment. Getting the right sort of advice is therefore crucial.
To protect customers, the FCA has strict rules for financial advisers to follow when advising on pension transfers. Amongst other regulatory obligations, advisers must ensure that any advice they give is suitable for the particular client’s circumstances.
Financial Mis-Selling Specialists
+ −Working on a ‘no win – no fee’ basis, TLW’s experienced team can help you through the process of claiming compensation if you have lost out by transferring a defined benefit pension.The claims process will depend on if the financial adviser who gave the transfer advice is still in business. If it is, then the claim would be referred to the Financial Ombudsman Service (FOS).
If the adviser is no longer in business, then the claim would go to the Financial Services Compensation Scheme (FSCS), a government-backed body set up to compensate those who have lost out when a financial firm fails and is unable to meet claims against it. nAs a last resort, it may be necessary to start Court proceedings to resolve a claim, however, that is very unusual.
TLW Solicitors Can Help
+ −If you are concerned about yours, a friend or loved one’s transfer out of a defined benefit, final salary or company pension scheme, please get in touch with TLW Solicitors by calling 0800 169 5925, emailing info@tlwsolicitors.co.uk or complete the call back form below.
Time limits can apply and so anyone wishing to bring a claim should do so without delay.
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