Bankhall warns claims firms targeting pensions
Payment protection insurance compensation claimants may be getting tricked into transferring their pension plan away from advisers, Bankhall has warned.
A regulatory bulletin to more than 2500 advisers who use the compliance service, said firms should contact clients if they receive unexpected notification that a client’s ongoing commission and servicing rights have been transferred.
The notice said: “We have been made aware that there have been instances that when consumers are signing papers to progress a PPI claim through a claims management firm, the firm has also obtained authority to switch ongoing commission and servicing rights relating to the consumer’s pension plans.
“These clients have then been requested to sign further papers providing authority to transfer their pension plans to a self-invested personal pensions.”
A spokesman for Bankhall said: “This issue was brought to Bankhall’s attention by a firm and we wanted to make other advisers aware in the event that they identify any unusual activity relating to their clients’ pension plans.
“We have been told that the clients involved had not intended to complain about their pension plans or transfer them, but unwittingly signed authorities and transfer documents.
“If firms become aware of any changes to their customers’ pension plans are not consistent with their current understanding of their needs and objectives, we suggest they contact their clients straight away for clarification, as they may not be fully aware of what they have signed.”