FSCS Paying out Compensation Against Kingsway Wealth Management Overseas SIPP Investment
Updated: Jul 17, 2020
The Financial Services Compensation Scheme has begun paying out compensation against Wrexham based Independent Financial Advice firm Kingsway Wealth Management who entered administration in December 2019.
As a result, 41 claims so far made against the advice firm with three being unsuccessful, the IFA is facing millions of pounds in pension transfer claims carried out by appointed representative Pension Transfer Limited.
According to Companies House documentation, Pension Transfer Limited arranged for pension switches from defined contribution schemes in 2009 and 2012 with the clients then investing into an overseas self-invested personal pension.
The Financial Ombudsmen Service had already ordered Kingsway to pay out in three separate cases, a total of £327,000 that were related to these pension transfers despite arguing responsibility that the losses should also be shared between clients, their IFA’s and the SIPP provider.
Kingsway were advised to put aside £2.6 million to cover any potential pension transfer claims against its appointed representative, but according to administrators the advice firm face up to £3.1million worth of liable claims relating to advice given to invest in SIPPs which so far have not been ruled on by the FOS.
Any outstanding claims with FOS could be passed to the FSCS, who last week announced its levy for 2020/21 has risen to £649m.
If you have been affected by SIPP Pension services offered by Kingsway Wealth Management Ltd and would like to discuss how we may be able to help give us a call on 01903 868251.
Information in this article was sourced from