The Pensions Ombudsman has rejected a complaint against Northern Foods trustees, which was accused of not performing adequate checks when transferring a pension to Capita Oak.
The member of Northern Food Pension Scheme, referred to as Mr R, lost his pension money after it was transferred to Capita Oak Pension Scheme in 2013.
The company was wound up a month later, as it was involved in a scheme by which members of the public were cold-called and persuaded to transfer their existing occupational pensions into Capita Oak Pension Scheme.
The Serious Fraud Office has been investigating the Capita Oak Pension scheme.
More than a thousand individual investors are thought to have been affected by the alleged fraud, including those who invested their pension funds.
The amounts invested in Capita plus Henley Retirement Benefit schemes total more than £120m, according to the fraud office.
Mr R's transfer procedure started when an individual who said that he was a representative of a company called Capita Oak contacted him.
After a review process, Mr R requested a transfer on 21 March 2013, with £67,589 being paid to the Capita Oak Scheme on 10 May 2013.
According to Mr R’s complaint form, he realised after contacting his representatives in April and May 2015 that the trustee could be at fault for the loss of his pension.
Mr R said that they failed to perform due diligence and/or make adequate checks to ensure the Capita Oak Scheme was a genuine pension scheme before transferring his funds.
In his determination, Anthony Arter, Pensions Ombudsman, said: “I do not find that there were any indications at that time that the Capita Oak Scheme was a scheme that the [Northern Foods] trustee should be wary of.
“Also, the High Court judgment in Hughes versus Royal London makes it clear that there was little the trustee could do to refuse Mr R’s transfer.”
This case was centred on a pension transfer request made in 2014 to a new scheme.
Royal London refused the request because of concerns about the status of the scheme and Ms Hughes’ right to transfer her pension into it.
Northern Foods trustees, however, failed to deliver leaflets warning about pension scams, issued by The Pensions Regulator (TPR) in February 2013, to Mr R.
According to Mr Arter, “the scorpion leaflets are designed to raise awareness on the possibility of pension liberation and other pension scams; gives examples of things to beware of; and where to get advice”.
He said: “Mr R was cold called and presumably he was offered the chance to access some of his pension savings early as he was under age 55 at the time.
“It is true that if Mr R had received the scorpion leaflet he would have had the opportunity to rethink whether he wished to continue with the transfer.”
In the meantime, the trustee has offered Mr R £1,000, in recognition of the distress he has suffered.
Mr Arter said: “I consider this a reasonable sum in this case for failing to distribute the scorpion leaflets. If Mr R wishes to take up this offer he should contact the scheme direct.”
maria.espadinha@ft.com
