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February 12, 2024

Abana Unipessoal Lda fails with FSCS

The Financial Services Compensation Scheme has declared Abana Unipessoal Lda in default after upholding a claim relating to mis-sold life-insurance.

The Portugal-based firm, formerly known as Ababa Lda, failed with the Financial Services Compensation Scheme (FSCS) on 8 February 2024.

According to reports the FSCS has received 17 claims against Abana in relation to insurance, pensions and self-invested personal pensions.

It was also reported that the FSCS has so far upheld one claim which was in relation to mis-sold life insurance.

 

What happened to Abana Unipessoal Lda?

Abana Unipessoal Lda had, prior to 31 December 2020, passported into the UK on a services basis. Its passport permissions only covered insurance intermediation in the UK.

The FSCS said it had determined that Abana had undertook regulated activities for customers which were outside of its permissions in the UK.

The FSCS added that this included arranging pension transfers, notably into SIPPs provided by UK-based Avalon and Westerby SIPP.

 

FSCS Claims and Abana Unipessoal Lda

The FSCS  has declared Abana Unipessoal Lda in default and is open to claims. However, at present it says it is only accepting claims from customers who transferred their pension into the Avalon SIPP.

The FSCS says this is because Westerby SIPP is still a live entity and as such any claims involving the Westerby SIPP should first be directed to the firm.

It also advised customers that there’s evidence to suggest that after late May 2014 Abana was not liable for the acts/omissions of its agent(s) in arranging/advising customer pension transfers.

It added 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.

This means some customer claims against Abana involving pension transfers after late May 2014 may not meet the qualifying conditions for FSCS to pay compensation.

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.