Two introducers involved in £86m of transfers, FCA reveals

Two introducers involved in £86m of transfers, FCA reveals

Two unregulated introducers, which the Financial Conduct Authority has launched legal proceedings against, were involved in the transfer of at least £86m in pension assets, the regulator has revealed.

The firms, Avacade Limited and Alexandra Associates, were involved in the transfers by more than 2,000 consumers, the FCA said.

Last November the regulator took the two introducers to court for allegedly providing a pension report service which was marketed as summarising a consumer’s pension information and retirement objective, to help them make decisions on their retirement savings - an activity which is regulated.

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The firms, which traded as Avacade Investment Options and Alexandra Associates before entering liquidation, then promoted self-invested personal pensions (Sipps) and investments in alternative investments such as tree plantations, the FCA said.

Mark Steward, executive director of enforcement and market oversight at the FCA, said: "The FCA reviews and assesses all reports received about unauthorised pension activities which are very often linked to these types of pension scams.

"The FCA is seeking injunctions, declarations and restitution orders to prevent further breaches in schemes which were unlawfully promoted to the public using false, misleading and deceptive statements."

The revelation comes after the FCA teamed up with The Pensions Regulator to raise awareness about pension scams in a new Scamsmart campaign.

The regulators found pension savers were scammed out of £91,000 each in the last year on average.