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October 30, 2023

FSCS Claims against Portal Financial Services reach £9.5m

The Financial Services Compensation Scheme (FSCS) has so far paid out over £9.5m in compensation to clients of Portal Financial Services.

The firm, which was also known as Portafina, was declared in default by the FSCS in March this year.

According to reports, as of October 2023 there have been 447 claims made to the FSCS concerning Portal Financial Services.

And so far 232 of these claims have been successful, 28 unsuccessful (rejected) and 187 still in progress with the FSCS.

The majority of these complaints relate to pension transfer advice, with a small number involving members of the British Steel Pension Scheme.

 

What happened to Portal Financial Services?

Portal Financial Services applied to have its FCA permissions cancelled in June 2021 and entered compulsory liquidation on 18 January 2023.

Prior to this the firm was facing 190 open Financial Ombudsman Service (FOS) complaints. And from July until December 2021 the FOS was upholding 95 per cent of these complaints

A FOS spokesperson said at the time: “The majority of the complaints are about pension products – mainly Ucis and other non-standard investments as well as DB pension transfers, with the most complained about issue being suitability of advice,”

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

In March 2022 the high court blocked Portal Financial Services from challenging a number of decisions made by the FOS.

Portal also advised on a number of pension transfers for some clients of Cherish Wealth Management between 2014 and 2015.

Both Cherish Wealth Management and its Principal firm Shah Wealth Management, which was declared in default in 2018, are currently in liquidation.

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.