Wealth management firm Quilter is reported to have undertaken its final review of pension transfer advice with the acquired firm Lighthouse Advisory Services. The firm is expected to pay final redress of £4 million to clients who received unsuitable pension transfer advice.
Earlier this year, Quilter was instructed by the Financial Ombudsman Service (FOS) to refund clients for unsuitable pension advice under its acquired firm, Lighthouse Advisory Services. FOS is a government-backed, independent scheme to settle complaints between financial services businesses and their customers.
Following a review by City watchdog, the Financial Conduct Authority (FCA) relating to pension transfer advice to former members of the British Steel Pension Scheme (BSPS) and other clients, 53% of business advice given before Quilter acquired Lighthouse in 2019 and 28% of Defined Benefit transfer advice, was found to be unsuitable.
Quilter discovered in its half-year results more customers required refunds. These cases are not related to British Steel, and compensation will be paid by the end of 2024. According to a Quilter spokesperson, the firm set aside £5 million, with £4 million for redress and £1 million for professional fees.
The firm said there is ‘some uncertainty’ over the exact case numbers, and the amount of compensation could increase or decrease depending on how the refunds are calculated at the time of the payout. Defined Benefit (DB) pension transfer compensation is calculated based on annuity cost equivalent to the value of a lost pension, which is determined by interest rates.
Quilter has paid more than £23 million in compensation to affected steelworkers and other clients on behalf of Lighthouse.
The FCA last year ruled it would not enforce a financial penalty on Lighthouse due to ‘Quilter’s actions in promptly and proactively paying, or offering to pay, redress to all impacted customers and the very high levels of cooperation with the FCA’s investigation’.
Workplace Pension Transfer Claims
+ −Final salary or Defined Benefit pensions promise a guaranteed payout. These plans provide a pension based on the average earnings throughout a person’s career or a fixed percentage of their final wages, so the longer you work, the higher your benefits. It is rarely good advice to transfer out of a final salary, Defined Benefit or company pension scheme.
Large companies such as NHS, local authorities, the armed forces, and British Steel usually offer defined pension benefits. Whether a lump-sum payment or regular instalments, the benefits are generous and even extend to death benefits.
Poor pension transfer advice can destroy retirement plans. TLW Solicitors specialise in helping clients who have been given negligent advice and persuaded to transfer their valuable Defined Benefit pension into a Self-Invested Personal Pension (SIPP).
The FCA has set up strict guidelines to prevent pension transfer mis-selling and continues to closely monitor the industry. If you suspect you received unsuitable advice, please contact us to explore your options.
TLW Solicitors’ view
+ −Sarah Spruce, Legal Director at TLW Solicitors, says:
“Many people don’t realise how much they have lost by transferring their pension. These cases can be very complex, and accurately valuing them sometimes requires expert evidence. If you are concerned about your pension or a loved one’s pension, contact a member of TLW Solicitors’ specialist DB Transfer team for a no-obligation discussion, and we can explore whether your case is suitable for a ‘no win, no fee’ refund claim.”
TLW Solicitors can help
+ −Our team can review your case to see if you were given unsuitable pension transfer advice. We have experience in dealing with direct claims to financial services providers, such as wealth managers, financial planners and independent financial advisers, as well as claims through the Financial Ombudsman Service and the Financial Services Compensation Scheme (FSCS), a lifeboat scheme that can provide compensation even if the financial firm that provided the advice has gone out of business. We will discuss the best option for you, and if we determine that your claim is suitable, we will handle your case on a no-win, no-fee basis.
Get in touch
+ −If you are concerned that you or a loved one were given unsuitable pension transfer advice, please call us on 0800 169 5925, email info@tlwsolicitors.co.uk or complete one of the forms below to arrange a confidential no-obligation consultation.
Getting advice as soon as possible is important, as strict time limits apply.
Minimum case values apply.
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