The UK’s Financial Conduct Authority has banned Steven Hodgson and Paul Adams of Vintage Investment Services (Vintage) from advising any customers on pension transfers and opt outs.
The regulator said in a statement on 31 October that Hodgson and Adams poorly advised people to transfer out of defined benefit pension schemes, including the British Steel Pension Scheme (BSPS).
They were also banned from holding any senior management function in a regulated firm.
In addition, Hodgson and Adams will pay £32,700 and £53,200 respectively to the Financial Services Compensation Scheme (FSCS) to contribute towards redress owed to Vintage customers.
Between January 2016 and December 2017, Vintage advised 97% of its defined benefit pension clients to transfer out of their pension, and 98.8% of those customers followed the firm’s advice. 165 people transferred out, including 93 members of the BSPS. The average completed transfer value was over £420,000 (£375,000 for BSPS members).
The FCA further said Adams and Mr Hodgson were responsible for this poor advice – two thirds of which did not meet the required standards. 132 customers continued to pay Vintage for ongoing advice after being wrongly advised to transfer.
Therese Chambers, joint executive director of enforcement and market oversight said: “People rely on good-quality pensions advice to secure a comfortable retirement. Mr Adams and Mr Hodgson fell far short of this basic expectation, earning significant fees for themselves in the process. Their fines will go to the FSCS to offset the cost of their failings.”
