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March 20, 2023

Portal Financial Services declared in default

Portal Financial Services has been declared in default by the Financial Services Compensation Scheme (FSCS).

The update from the FSCS confirmed that Portal, which was also known as Portafina, had been declared in default on the 15th of March 2023.

According to reports there have been over 290 complaints made against the firm.

And so far two of these have been rejected, but one was upheld by the FSCS, thus triggering the declaration of default.

The remainder of the complaints are currently still in progress.

Complaints against Portal

In March 2022, The High Court ruled against Portal Financial Services after it tried to challenge a number of decisions made by the Financial Ombudsman Service.

The majority of complaints made to the Financial Ombudsman Service against the firm were about pension products. Mainly UCIS and other non-standard investments, but also Defined Benefit pension transfers. In particular complaining about the suitability of advice given by Portal.

UCIS – Unregulated Collective Investment Schemes -are classed as high-risk investments. They are usually only appropriate for clients whose attitude to risk is compatible. And are generally considered unsuitable investment choices for people with little investment experience or capacity for loss.

The FSCS has also said that Portal Financial Services LLP/Portafina is one of the firms associated with claims regarding the British Steel Pension Scheme (BSPS).

In 2017 thousands of British Steel Pension Scheme members were given unsuitable advice to transfer out of their defined benefit pensions into defined contribution pensions. These are also known as Personal Pension Plans or Self-Invested Personal Pensions (SIPPs).

Portal Financial Services LLP entered compulsory liquidation on the 18th of January 2023. You can read more about Portal Financial Services (Portafina) here.

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.