FSCS declares two firms with outstanding pensions claims in default

FSCS declares two firms with outstanding pensions claims in default

Two firms with a number of pensions-related claims have been declared failed by the Financial Services Compensation Scheme.

Nationwide Benefit Consultants Limited and Trust Financial Consulting Ltd were declared to have failed by the FSCS on Friday (September 16).

The former has 25 claims against it, and was incorporated in 2011, trading under the name The Pension Reporter from May 2014.

It ceased to be registered as an appointed representative with the FCA in April 2016 and was dissolved in 2018.

Between May 2014 and April 2016 the company acted as an appointed representative of Joseph Oliver Mediação de Seguros, LDA, a regulated Portuguese firm, which passported into the UK under the insurance distribution directive.

Nationwide Benefit Consultants was involved in advising on, and arranging pensions transfers and subsequent investment into the Trafalgar Multi Asset Fund, which is the subject of a Serious Fraud Office investigation. 

The investigation was opened in May 2017 and is still ongoing.

The SFO is looking at the Capital Oak Pensions and Henley Retirement Benefit schemes, and Sipps sold through Sycamore Crown, Jackson Francis, TPS Land, CLP Brokers or PFR Services, as well as the Trafalgar fund.

Some £120mn is thought to have been defrauded, affecting 2,000 individual investors' pension funds. 

The FSCS has been working with the Financial Conduct Authority and Financial Ombudsman Service to investigate the activities of the company, and is considering whether valid claims exist under its rules.

The other failed company, Trust Financial Consulting Ltd, has two claims in progress, both of which are pensions related.

The firm was regulated by the FCA until May 2011.