A voluntary questionnaire has been sent by the UK’s financial watchdog to customers of AES Financial Services (which also traded as International Pension Transfer Specialists or IPTS), Premier Pension Solutions (PPS) and Premier Pension Transfers (PPT).
These clients invested or transferred pension investments into schemes managed or marketed by Ark Business Consulting and/or the Ark pension schemes.
According to correspondence dated 15 September, seen by International Adviser, the questionnaire was sent to consumers to gather more information about their dealings with these firms.
They have until 17 October to provide any information to the FCA.
Director Sam Instone told IA: “We are absolutely certain AES Financial Services Ltd has never provided any advice at all in relation to Ark schemes, so it seems like a strange questionnaire.”
What information?
Consumers are asked the same 16 questions about each firm:
- Did the client approach the firm or vice versa?
- Was first contact in person or remote?
- In/from which country – specific options given are the UK, Spain or other?
- What was the date of first contact?
- What are the names and job titles of contacts at the firm?
- What services did the firm provide and on which dates?
- Was ongoing contact in person or remote?
- Where was the client based when these services were provided?
- What regulatory protections was the client told they had?
The watchdog also asked for details of any documents the client has.
Certified high net worth?
In addition to how the clients interacted with the four companies above, the FCA is seeking details of their personal investment experience.
Specifically, customers are asked if they have ever been a certified high net worth individual.
This is described as someone who ‘has earned at least £100,000 ($137,446, €117,251) or have held net assets to the value of more than £250,000 throughout the financial year’.
The FCA is also looking for information about each investment/transfer made into the Ark pension scheme(s) and whether they raised any formal complaints against any of the firms.
Finally, clients are asked if they would be willing to be contacted by the regulator, fill in a lengthier questionnaire and sign a witness statement setting out their dealings with the firms.
What happened?
In May 2011, Dalriada Trustees was appointed by The Pensions Regulator (TPR) to take over the running of a number of schemes marketed by Ark Business Consulting.
TPR took action following concerns that the schemes were being used for pension liberation, where individuals under the age of 55 get access to their retirement pots early by way of a loan or other form of cash inducement.
According to Dalriada, such schemes generally have high charges and often invest whatever money is leftover in risky and esoteric vehicles.
They also put members at risk of having to pay large sums of tax. Taking money out of a pension early can trigger an HM Revenue & Customs tax charge at a rate of up to 55%.
The latest Dalriada update to members is dated November 2020, in which it advised that it is “not able to place a value on any members’ benefits at the time and are therefore unable to make payments to members”.
