QROPS settlement of over £40,000 recovered for our client
Mr R approached Angelus Law in January 2020 concerned over the potential losses he had suffered after transferring his private personal pension into a Qualifying Recognised Overseas Pension Scheme (‘QROPS’) in late 2014. A chef by trade, Mr R had been advised and persuaded by an unregulated financial advisor that his pension was underperforming and that he should transfer the scheme into the QROPS based in Gibraltar which would give him freedom over what he could invest the money in and, in turn, give him higher returns and a higher income when he retires.
The advisor failed to advise Mr R that in reality, QROPS schemes are not regulated by the Financial Conduct Authority, are designed for the ex-pat / émigré community and, more specifically, those of high net worth and/or a sufficient level of sophistication and experience in investments to handle their own pension. None of these things could be said of Mr R who, like most of us, has no experience with investments and who remains based permanently in the UK with a modest salary.
Additionally, an Independent Financial Advisor (‘IFA’) regulated by the Financial Conduct Authority further advised that Mr R should then invest the pension money into four different ‘green energy’ investments. What the IFA did not advise Mr R was that the investments were speculative, high-risk and illiquid meaning his money was locked into them and he could not sell on the investments to anybody else.
Ultimately, at the time of Mr R instructing Angelus Law at least two of these investments had failed and it is feared that the remaining two investments will also fail. Mr R’s pension fund has been left at a substantial shortfall as a result.
Upon being instructed, Angelus Law obtained evidence from all of the firms involved and commenced action both via the Financial Services Compensation Scheme (FSCS) in relation to the advice of the IFA, and, via the Professional Negligence Pre-Action Protocol in relation to the QROPS administrator owing to its own failings in the matter including its dealings with the unregulated advisor and its failure to carry out proper due diligence.
Thus far Angelus Law have been able to recover an interim settlement of over £40,000.00 for Mr R and our investigations into the remaining investments and the actions of the QROPS provider continue.
Angelus Law specialise in recovering these lost pension funds for clients and use all available avenues to do so including the Financial Services Compensation Scheme (FSCS), the Financial Ombudsman Service (FOS) and, if necessary, pursuing those firms responsible through the Courts.