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November 28, 2022

Victory at long last in London & Colonial SIPP case!

It’s finally good news for our client Miss S in her case against pension provider London & Colonial Services Ltd

This has been one of our most challenging cases, but we never gave up! And after 7 years we got Miss S the justice and compensation she deserves.

We knew we had a strong case against London & Colonial Services Ltd.  But as with most cases that are referred to the Financial Ombudsman Services it can be a lengthy process.

We appreciate that this is in part due to the impartial and thorough nature of the FOS.

And no doubt the influx in cases against SIPP providers who are now being held accountable for their part in the SIPP mis-selling scandal.

Not to mention the Adams vs Carey Pensions (Options) court case which delayed many decisions and gave some pension providers a reason to reject initial decisions.

Anyway, we kept on and are very pleased to have helped Miss S get her pension money back.

Here’s a bit more about the case…

The Resort Group

Miss S attended was invited to attend a pension conference in London by TRG – The Resort Group.

She’d never considered moving her pension but following the presentation, she was persuaded to transfer and invest in The Resort Group.

The Resort Group is an unregulated investment in luxury hotel resorts in Cape Verde. As it is unregulated there is no protection from the FCA or access to the FSCS for investors.

It should only have been recommended to high-net-worth investors with experience.

Miss S wanted to make sure her children would be taken care off in the event of her death. She was assured that this would be the case AND that her pension would be worth more in retirement if she made this investment.

She had no investment experience and thought she was getting professional advice on her pension. She had no idea the risks involved or what losses would be incurred as a result of transferring her Defined Benefit pensions.

TRG assured her it would all be taken care off and she trusted them. She signed the forms and was referred to RealSIPP and CIB Life Pensions.

CIB Life & Pensions / Real SIPP

CIB life and Pension were a regulated financial advice firm and RealSIPP were its Appointed Representatives between 2010-2015.

They are responsible for hundreds of business introductions to London & Colonial which involve SIPPs and The Resort Group Investment. CIB Life and Pension are no longer authorised, or in business.

They were reportedly named on more than 1,000 claims at the Financial Services Compensation Scheme, which also mention The Resort Group.

London & Colonial

We requested all the relevant information and conducted our investigations and identified that Miss S had a valid case against London & Colonial Services Ltd.

We issued a letter of complaint in September 2015 concerning the due diligence London & Colonial undertook before accepting Miss S’s application.

London & Colonial sent the final response letter in November 2015 and rejected our client’s complaint. So, we referred the complaint to the Financial Ombudsman Service.

The complaint was upheld, but London & Colonial disagreed. A second investigator examined the case and also concluded it should be upheld in favour of the client.

They highlighted that the pattern of business being introduced by RealSIPP presented a “high risk of consumer detriment”

And London & Colonial should then have declined Miss S’s business from RealSIPP.

Had it done so, it’s most likely she wouldn’t then have opened a SIPP and transferred her DBS.

In July 2022 Miss S was awarded compensation.

You can read our case study here or visit the FOS website to read the decision in full.

Important Information!

You are not required to use our services to pursue your claim. You can also seek further advice or shop around subject to any time limits within which a claim must be made.

It is possible for you to present the claim for free, either to the firm or person against whom you wish to complain or to the statutory ombudsman (Financial Ombudsman Service or Pension Ombudsman Service) or the Financial Services Compensation Scheme, whichever is applicable to your claim.