Following an investigation by The Financial Conduct Authority (FCA), civil proceedings in the High court commenced against Avacade Limited on 7 September 2017.
The FCA alleged the firm Avacade Limited provided a pension report service which was marketed as summarising a consumer’s pension information and retirement objective to help them decide what to do with their pension.
The firm, which traded as Avacade Investment Options and Alexandra Associates, before entering liquidation then promoted self-invested personal pensions (SIPPs) in alternative investments such as tree plantations, sustainable agroenergy and hot pods (desk space within commercial properties).
The FCA alleged that Avacade provided financial advice to clients, and made arrangements for clients to transfer their pensions into SIPPs with a view to purchasing high-risk investments within those SIPPs.
The FCA is seeking restitution orders in favour of consumers who were affected by these breaches as well as injunctions to prevent further breaches.
On 16 August 2018, the Court fixed a timetable of the procedural steps which the parties must comply with in preparation for a trial.
The Court has ordered that there be two trials: the first trial relates to the issue of liability and, if the FCA are successful in their claim against Avacade, there will be a second trial which will determine the amount of the losses suffered by investors.
The first trial is due to commence on a date to be fixed in January 2020.
Claims related to high risk investments in SIPPs have been on the up in recent years, with compensation paid to investors via the Financial Services Compensation Scheme (FSCS) up by 35 per cent.
Pension Claim Consulting have recovered compension against SIPP providers who used Avacade limited.
Did you use the services of Avacade Limited when you transferred your pension into a SIPP?
Speak to one of our claims specialists today and find out if you could claim compensation.