Capital & Income Solutions (C&IS) who described themselves as pension release “experts” were a financial advice firm based in Leeds.
They entered into liquidation in January 2020, 6 months after the FCA placed restrictions on their permissions which ordered them to immediately cease advising on pension transfers.
However, reports suggest that the suitability of the advice they gave to clients may be in question from as far back as 2009.
One mis-selling case against them, which was upheld by the Financial Ombudsman Service (FOS), involved a Mr W. He was introduced by a mortgage adviser who submitted a recommendation letter to Capital & Income Solutions.
The mortgage adviser was not FCA authorised to give pension transfer advice, unlike C&IS, who despite having reservations, proceeded with the transfer.
Not only was this transfer an unsuitable move for Mr W, but his pension fund lost value as a result.
Fortunately for Mr W the FOS maintained the position in their decision that Capital & Income Solutions “…shouldn’t have done the transfer at least without exploring matters further with Mr W.”
Whilst the mortgage broker in the case above was not named, it has been reported that Dundee based The Mortgage Finance Store (TMFS) introduced pension transfer business to C&IS.
Whist this in itself is not an unusual practise, some of the transfers themselves most certainly are questionable.
According to reports “Some clients were advised to transfer out of their DB pensions at a 5% fee and were later advised to switch drawdown providers (including Aviva, Royal London and Standard Life) for another 4-5% fee.”
Claims against Capital & Income Solutions are now at the FSCS, who issued the following update on their website…
“We’ve identified Capital & Income Solutions Ltd may have provided advice that left you worse off. Capital & Income Solutions Ltd may have advised you to transfer your defined benefit pension to a private pension. Transferring your defined benefit pension means you would have lost valuable pension benefits… The advice you received may not have been the best advice for you.”
With over 500 complaints already against Capital & Income Solutions, it’s not clear how many involved TMFS. However, if you have had any dealings with either of these firms regarding your pension, you’d be wise to check if it’s affected you.
We offer a free assessment check to anyone who thinks they may have been mis-sold.
It’s simply a chat in which we will ask a few basic questions surrounding your pension transfer. That’s it!
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