FSCS Accepting Claims for Failed Smith Holdings

Smith Holdings was founded in 2005 and authorised in 2006 before being dissolved in March 2015. The FSCS has confirmed that it has received four claims so far against the firm; one has been upheld, and three were unsuccessful.

The claims against the firm were all related to unsuitable pension advice, but none so far have been in relation to British Steel Pension Scheme (BSPS) claims.

The FSCS is a government-backed lifeboat compensation scheme for customers of failed FCA-authorised financial services firms. This means that the FSCS can pay compensation if a firm is unable or likely unable to pay claims against it. Declaring Smith Holdings Ltd in default opens the door for ex-clients of the holding company and Life Time Independent to claim compensation of up to £85,000 per claim.

While it has not been confirmed exactly what the claims against Smith Holdings relate to, unsuitable pension advice usually occurs when advisers encourage individuals to transfer or invest a pension, and the gains or rewards of doing so have been grossly exaggerated. This leaves retirement pension funds smaller than expected.

Anyone who has been advised to move funds without knowing the risks may be entitled to compensation. TLW Solicitors seek compensation for people who have been badly advised to transfer away from a previous employer’s pension scheme; this can be from the FSCS or through other avenues.

Legal Director and Head of Professional Negligence at TLW Solicitors, Sarah Spruce, said:

“We are pleased to hear that the FSCS is now accepting claims against Smith Holdings and Life Time Independent, and we’re sure their former clients will be too! Pension Mis-selling has been a problem for a long time, and those who have historically lost out on their funds may think the chance to claim compensation had passed, but this may not the case.

If you received pensions advice from Smith Holdings and Life Time Independent, please get in touch with TLW Solicitors’ Professional Negligence Team for a no-obligation discussion to see if we can help.”

Working on a ‘no win – no fee’ basis, our experienced team can help you through the FSCS compensation process.

Our clients are reassured by the knowledge and experience we have of FSCS procedures, and we have had FSCS claims successfully upheld for clients whose claims were previously refused on purely technical grounds.