The Court of Appeal has unanimously ruled in favour of Carey Pensions client Russell Adams after he took the SIPP provider to court for mis-selling.
Carey Pensions, now known as Options SIPP, won the initial ruling in this “landmark SIPP case”.
However, the judgement published today has overturned that decision and declared that the SIPP agreement is “unenforceable” against Mr Adams.
This now means he is entitled to recover the money he paid into it, as well as compensation for the losses he suffered.
The outcome of this court case against Carey Pensions is expected to have “significant ramifications” on the SIPP industry.
Fortunately, it hasn’t affected our Financial Ombudsman decisions in cases that are on a similar basis to that of Mr Adams.
Last month we reported on the positive final decision we received from The Financial Ombudsman against Carey’s on behalf of our client Mr S.
Like Mr Adams, Mr S invested in Storefirst through a Carey SIPP though CL&P – an unregulated introducer firm based in Spain.
In building the case on behalf of Mr S, we examined all the surrounding details of his pension transfer. We then assessed the necessary information to identify the relevant breaches in the FCA’s principles and used these to challenge Carey’s treatment of our client.
The FOS concluded that the FCA principles were relevant to the complaint and subsequently addressed and agreed with these when making their Final decision.
The Ombudsman commented in Mr S’s final decision
“In conclusion I remain of the opinion that in the circumstances it is fair and reasonable for me to find that if Carey had carried out sufficient due diligence on CL&P, or acted on the information it subsequently received in a timely manner, it should not have accepted business (including Mr S’s application) from CL&P.”
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