FSCS Accept Tenet Unsuitable Pension Advice Claims

Established by the government in 2001, the FSCS is a safety net for customers of financial services firms regulated by industry watchdog, the Financial Conduct Authority (FCA), that fail. When these firms go under, they typically cannot fulfil any claims made against them, potentially leaving their customers out of pocket. The FSCS can also intervene to facilitate customer claims for firms in liquidation while other investigations are ongoing.

The FSCS is financed entirely by the financial services industry through levies and compensates customers who have suffered losses. The current compensation limits are £85,000 for individual claims and £170,000 for joint accounts.

Defined benefit pensions are generally offered by public sector employers or large established corporates and come with generous ‘final salary’ or death benefits. Teachers, healthcare workers and local government employees are among those who can join such a company pension scheme.

Following the introduction of pension freedoms in 2015 and the national scandal surrounding the British Steel Pension Scheme, the Financial Conduct Authority (FCA) overhauled the pension transfer market to ensure customers were better informed. Nowadays, transferring out of these ‘gold standard’ schemes is considered poor advice.

Unfortunately, some financial advisers still manage to persuade clients to transfer their defined benefit pensions, usually to a Self-Invested Personal Pension (SIPP). While SIPPs are helpful and offer flexibility to investors, factors such as the level of risk associated with an investment or the fee structure for initial advice and ongoing service may not have been explained thoroughly leading to unsuitable transfers. A SIPP would have to perform exceptionally well to match the benefits and performance of a defined benefit pension, which is not always achievable.

A recent report estimated that £1.2 billion might be lost annually through non-existent or poor pension transfer advice leading to people transferring out of their workplace pensions.

The specialist team at TLW Solicitors has dealt with claims relating to Tenet and other companies that poorly advised on pension transfers. You may be entitled to compensation if you have transferred out of a defined benefit pension without knowing all the risks.

Sarah Spruce, Legal Director, says:

“Everyone’s circumstances are different, but a common goal is that we want to know we will be financially secure in retirement. Consolidating pensions or transferring to other options, such as a SIPP, can be tempting. A workplace pension usually offers far better benefits for you in retirement and your beneficiaries after your death.

“Tenet had a huge network and was associated with hundreds of appointed representatives and thousands of financial advisers. If your financial adviser was previously authorised by Tenet, then Tenet is responsible for the advice and services you received. If you feel you have not received the right advice, please contact my team for a confidential, no-obligation discussion about the next steps and to see if you may be eligible to make a ‘no-win, no-fee’ compensation claim.”