The Financial Services Compensation Scheme (FSCS) has said it is investigating and open to claims against Portugal-based advice firm Abana Unipessoal Lda (AUL).
Prior to 31 December 2020, Abana passported into the UK on a services basis. AUL’s passport only covered insurance intermediation in the UK.
FSCS said it has determined that AUL “undertook regulated activities for customers outside of AUL’s insurance intermediation permissions in the UK”.
“These regulated activities included arranging pension transfers, notably into the Avalon & Westerby self-invested personal pensions (Sipps), both UK-based Sipp providers”, the UK lifeboat scheme added.
Parent company of the Avalon Sipp, Avalon Investment Services, entered administration in February 2016, after it lost a civil claim brought against it by businessman Michael Bennett. It was declared failed by the FSCS in 2020.
International Adviser contacted Westerby Group for a comment but it did not reply in time for publication.
Customer claims against AUL
The FSCS said that protection may exist for customers where:
- AUL arranged and / or advised a customer’s pension transfer in the UK, and through AUL’s agent(s), with the pension transfer into the Avalon Sipp; and
- The claim meets the qualifying conditions for paying compensation under our rules as set by the Financial Conduct Authority (FCA).
The UK lifeboat scheme said that there is evidence to suggest that after late May 2014, AUL “was not liable for the acts / omissions of its agent(s) in arranging / advising customer pension transfers, and that those who did arrange the customer pension transfer after late May 2014 did so on a basis which FSCS protection does not extend to”.
Accordingly, while each claim will be considered on its merits, “some customer claims against AUL involving pension transfers after late May 2014 may not meet the qualifying conditions for FSCS to pay compensation”, it added.
The FSCS said it will write to those customers whose claims fall into this category.
The lifeboat scheme said it is also aware that the Financial Ombudsman Service (FOS) has issued decisions upholding customers’ complaints against Abana. Customers’ claims submitted to FSCS against Abana are considered on a case-by-case basis by FSCS and under its rules, which are different from FOS.
The FSCS added that it is currently only open to claims against AUL from customers who transferred their pension into the Avalon Sipp and not the Westerby Sipp.
This is because FSCS understands that Westerby Sipp is still a live entity. Any claims against AUL involving a transfer into the Westerby Sipp should be directed to Westerby Sipp, or the FOS as appropriate.
Wellington Court
In other news, the FSCS announced on 23 May that Ireland-based advice firm Wellington Court Financial Services has failed.
This comes nearly a year after the UK lifeboat scheme said it was investigating and considering customers’ claims against the firm.
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 Sipp administered by Guinness Mahon Trust Corporation (GMTC).
The FSCS told IA that there are 329 claims open which are largely pension/Sipp advice-related. It added that the firm has now been declared in default because its team identified a compensable claim.
Old Park Capital
Elsewhere, the FSCS also reported that London-based Old Park Capital Limited has failed.
Old Park Capital was an asset management firm founded in 2009. It also operated a business premises renovation allowance scheme.
The FSCS said there are currently eight investments-related claims open.
