The Financial Services Compensation Scheme (FSCS) is considering customers’ claims against Ireland-based advice firm Wellington Court Financial Services.
Wellington Court had passported into the UK under the Insurance Distribution Directive. The firm had a UK establishment in Devon, which closed on 31 December 2021.
From 19 December 2016, Wellington Court had permission from the Financial Conduct Authority (FCA) to carry out certain regulated activities including advising on investments and pension transfers.
Prior to this date, it only had permission to carry out insurance mediation and insurance distribution activities.
The FSCS has been working with the FCA and the Financial Ombudsman Service (FOS) to “investigate the activities” of Wellington Court.
The FOS has upheld “a large number of complaints” against Wellington Court in respect of its involvement with the transfer of customers’ pensions into a self-invested personal pension (Sipp) administered by Guinness Mahon Trust Corporation (GMTC).
The FSCS said on 22 June 2022: “GMTC was declared in default by FSCS on 29 October 2020. However, where Wellington Court was involved in a customer’s transfer into the GMTC Sipp, FSCS has required customers to first exhaust their rights against Wellington Court via the FOS before FSCS is able to consider any claim against GMTC.”
But Wellington Court has “failed to satisfy the FOS awards” and the FCA “has been notified of this failure”.
Investigation
The FSCS said it is “now considering whether valid claims exist under its rules in connection with Wellington Court’s activities”.
The UK lifeboat scheme added that if clients think they “received bad advice from Wellington Court” to transfer pensions into a Sipp, they can make a claim against the firm to FSCS. It added that Wellington Court “may also have arranged the transfer rather than providing advice”.
The FSCS added: “All claims will be considered on a case-by-case basis, to determine whether you are eligible for compensation or not. As part of our investigations, FSCS will be considering if Wellington Court can meet claims made against it.”
According to the FCA register, the UK watchdog placed restrictions on the firm on holding assets in the UK and carry out pension transfers on 13 October 2020. Wellington Court is still authorised by the Central Bank of Ireland.
International Adviser has contacted Wellington Court for a comment, but it did not reply in time for publication.
