In March 2017 our client received pension transfer advice from an independent financial advisor ‘Omega Financial Solutions’ to transfer a defined benefit pension in to an unsuitable QROPS scheme with Momentum Malta based in Malta.
The client was a member of the Nationwide defined benefit scheme and had a pension for the sum of £89,987.74 and this was transferred to the Momentum Malta QROPS and subsequently invested with Quilter International into numerous unsuitable bonds which did not suit her risk profile. Omega Financial Solutions therefore gave our client unsuitable advice to transfer her defined benefit pension.
After the transfer the client was subjected to numerous administration fees she would not have had to pay in her original scheme. She also lost out on the interest she would have accumulated in her previous scheme which has been reflected in the FSCS’s decision.
A claim was brought against Omega Financial Solutions for providing negligent financial advice which led to a pension transfer she should have been advised against making. The FSCS found that the client did have a valid claim against Omega Financial Solutions and awarded her the maximum figure of £85,000.00, in respect of the benefits and interest lost since she left the defined benefit scheme.