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Defined Benefit Tranfers

Defined Benefit Tranfers

A defined benefit transfer, is a pension transfer from a salary-related pension scheme where the policy holder gives up scheme benefits in return for a monetary value; which is then invested into another pension scheme.  DB transfers have been a hot topic over the last couple of months, with the London Capital & Finance case being at the forefront of discussion.

The FSCS (Financial Services Compensation Scheme) has provided examples of information or advice that may have influenced one’s decision to invest into such schemes, as mentioned on moneymarketing such as:

  • Comments on the pros and cons
  • Comments on the merits of the investment such as: assurances over the security of the underlying assets of the bonds themselves
  • Comments/value judgements on the quality of the investment for example: “this is an excellent product offering a fantastic rate of return.”

London Capital & Finance left over 11,000 investors with an estimated total loss of £237 million pounds.  At present the FSCS have expressed that some investors could be entitled to compensation if ‘advice’ was provided upon the decision of transfer; for those where such advice was not provided; these investors will be at a loss moving forward.  There is an ongoing investigation to guarantee such information.

Mini bonds, were also involved within the LC & F investigation, as loans to businesses channeled via mini bonds collapsed. Smith & Williamson partner and joint administrator of LCF Henry Shinners tells Sky that its fees are fair given the more than two million files and tens of thousands of transactions it needs to track to work out where bondholders’ money has gone and seek to recover it.

Here at Angelus Law we are proficient at handling all types of mis selling matters; our solicitors make it the forefront of the case, to ensure all losses are returned with additional compensation for the inconvenience.
Mis sold investments and pensions are an area of law in which we are proud to assist our clients with.  Negligent advice can cause large sums of monetary loss; which can have a negative effect on one’s mental health and personal life. Angelus Law are here to minimise the stress and inconvenience and ensure your case is handled professionally and correctly.

The current media awareness surrounding DB transfers, has come to light at a time where concerns regarding the economy and financial security is at an all-time high; due to the current worldwide pandemic. Angelus Law, would like to make readers aware that due to this pandemic any ‘advice’ and ‘informative guidance’ you could be given at present; may be destined for a high-risk investment.  Scams are currently on the increase, due to the struggling economy, taking advantage of vulnerable persons with existing savings and or pensions.

Angelus Law are assisting a wide range of clients, who have received negligent financial advice; resulting in financial loss.  The recommended products did not match our client’s suitability or net worth.  The advice given must match the long term goal, attitude to risk and be in the clients best interest; if not, this can be deemed as unsuitable and should be avoided.



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