British Steel IFA compensation payouts top £500k

By Michael Klimes

Go to the profile of Money Marketing
Oct 31, 2018
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IFA Active Wealth, which found itself at the heart of the British Steel Pension Scheme saga, has cost the Financial Services Compensation Scheme more than half a million pounds so far, Money Marketing has learned.

Data provided to Money Marketing about the firm that was declared insolvent in February shows the lifeboat fund has awarded compensation of £531,000 so far.

It has already paid £442,000 to 14 claimants and is in the process of paying £89,000 to three more.

The FSCS has received 211 claims in total about Active Wealth, of which 162 are open and 43 are closed.

Seventeen have been rejected, but six more have been re-opened.

The greatest number of claims, 126, relate to transfers to a personal pension, which accounts for nearly £452,000 of compensation.

The second highest number of claims, 42, relate to Sipps and have accounted for £80,000 of the payouts.

Thirty four claims are about other pension advice and four are classified as concerning investment portfolios.

There have been allegations Active Wealth breached duties under conduct of business rules to ensure personal recommendation were suitable for clients and it failed to carry out appropriate due diligence in the context of British Steel.

In December 2017, Active Wealth managing director Darren Reynolds was asked to appear before MPs on the pensions select committee, but did not attend the hearing.

Earlier today Money Marketing reported the FSCS has also received more than 300 claims against the collapsed Lifetime Sipp Company in the last six months.

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