The Financial Services Compensation scheme is investigating Wellington Court Financial Services Ltd over the transfer of client pensions into a SIPP.
The FSCS says it will also now consider customers’ claims against Wellington Court.
Wellington Court was incorporated in Ireland and passported into the UK under the Insurance Distribution Directive. It had an office in Devon which closed on 31 December 2021.
The FSCS is now working with the FCA and the Financial Ombudsman Scheme (FOS) to investigate complaints that the firm failed to pay compensation awards ordered by the FOS.
From 19 December 2016, Wellington Court was granted permission by the FCA to carry out certain regulated activities. Activities included advising on investments and pension transfers. Prior to this date, it was only allowed to carry out insurance mediation and insurance distribution.
The FOS has upheld a “large number of complaints” against Wellington Court about its involvement in the transfer of customers’ pensions into a Self-Invested Personal Pension administered by Guinness Mahon Trust Corporation Ltd (GMTC).
GMTC was declared in default by the FSCS on 29 October 2020. However, because Wellington Court was involved in a customer’s transfer into the GMTC SIPP, the FSCS required customers to first exhaust their rights against Wellington Court via the FOS before FSCS can consider any claims against GMTC.
The FSCS said that Wellington Court had failed to “satisfy” the FOS awards and the FCA has been notified. The compensation scheme is now considering whether valid claims exist under its rules in connection with Wellington Court’s activities.
The FSCS has asked any clients who believe they may have received bad advice from Wellington Court to transfer pension benefits into a SIPP to make a claim against the firm to the FSCS. It adds that Wellington Court may also have arranged the transfer rather than providing advice.
The FSCS said all claims will be considered on a case-by-case basis to determine whether compensation is payable.
As part of its investigations, the FSCS will consider if Wellington Court can meet claims against it.
