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FSCS investigates agency over failure to pay FOS awards

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The Monetary Companies Compensation scheme is investigating Wellington Court docket Monetary Companies Ltd over the switch of consumer pensions right into a SIPP.

The FSCS says it would additionally now contemplate clients’ claims towards Wellington Court docket.

Wellington Court docket was integrated in Eire and passported into the UK underneath the Insurance coverage Distribution Directive. It had an workplace in Devon which closed on 31 December 2021.

The FSCS is now working with the FCA and the Monetary Ombudsman Scheme (FOS) to analyze complaints that the agency did not pay compensation awards ordered by the FOS.

From 19 December 2016, Wellington Court docket was granted permission by the FCA to hold out sure regulated actions. Actions included advising on investments and pension transfers. Previous to this date, it was solely allowed to hold out insurance coverage mediation and insurance coverage distribution.

The FOS has upheld a “massive variety of complaints” towards Wellington Court docket about its involvement within the switch of shoppers’ pensions right into a Self-Invested Private Pension administered by Guinness Mahon Belief Company Ltd (GMTC).

GMTC was declared in default by the FSCS on 29 October 2020. Nevertheless, as a result of Wellington Court docket was concerned in a buyer’s switch into the GMTC SIPP, the FSCS required clients to first exhaust their rights towards Wellington Court docket through the FOS earlier than FSCS can contemplate any claims towards GMTC.

The FSCS stated that Wellington Court docket had did not “fulfill” the FOS awards and the FCA has been notified. The compensation scheme is now contemplating whether or not legitimate claims exist underneath its guidelines in reference to Wellington Court docket’s actions.

The FSCS has requested any shoppers who consider they might have obtained unhealthy recommendation from Wellington Court docket to switch pension advantages right into a SIPP to make a declare towards the agency to the FSCS. It provides that Wellington Court docket can also have organized the switch somewhat than offering recommendation.

The FSCS stated all claims will likely be thought of on a case-by-case foundation to find out whether or not compensation is payable.

As a part of its investigations, the FSCS will contemplate if Wellington Court docket can meet claims towards it.


 



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