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£85,000 Win After Client Was Wrongly Advised To Transfer His £415,000.00 Pension Pot

£85,000 Win After Client Was Wrongly Advised To Transfer His £415,000.00 Pension Pot

Our client David Rowland transferred over £400,000 into a QROPS pension scheme called Sovereign Centaurus

A retired IT consultant who was poorly advised to transfer his pension worth over £400,000 into a Qualifying Recognised Overseas Pension Scheme has won £85,000 in compensation. Dave Rowland, 68, who lives in Alicante with his wife Carol, was mis-sold investment advice which resulted in him moving his pension that was worth over £415,000 to an unsuitable investment scheme, losing thousands in interest.

Mr Rowland’s original pension was split between a Defined Benefit Pension of £265,612. This pension scheme is based on the number of years that a person has worked for their employer and their salary. He also had a normal pension which amounted to £149,677.

In March 2017, an independent financial advisor ‘Omega Financial Solutions’ contacted Mr Rowland and recommended that he transfer both of his pensions into an unsuitable Qualifying Recognised Overseas Pension Scheme with Momentum Malta. Mr Rowland transferred both of his pensions in October 2018 to the Malta QROPS named Sovereign Centaurus.

A QROPS is based abroad and this type of pension offers benefits such as a spouse being able to inherit the pension in the case of the pension holder’s death. These pensions are invested into funds and in this case, were managed by Quilter International; investment advisors that offer flexible, tax-efficient offshore savings and investment solutions. Quilter International put the money into unsuitable bonds that didn’t fit Dave Rowland and his wife Carol’s risk profile.

Dave and Carol Rowland sought legal advice and contacted Liverpool-based High Street Solicitors who worked to recover £85,000 in losses of interest on Mr Rowland’s pensions.

Originally filing a claim against Omega Financial Solutions, the team at High Street Solicitors got to work submitting a claim for the negligent financial advice that was received. This was rejected as Omega Financial Solutions had gone into administration.

High Street Solicitors resubmitted a claim and the Financial Services Compensation Scheme  found that Mr and Mrs Rowland did have a valid claim and based their total losses from the date he transferred his pensions which is when he received the negligent financial advice. The couple were compensated the maximum award of £85,000 which was based on the hypothetical valuation of the Defined Benefit Pension at the time of the transfer and for the interest lost on his original pensions had he not been advised to transfer out of both schemes.

Carol Rowland said of her experience: “It was a fantastic experience with High Street Solicitors. We were surprised to receive a penny, never mind the sum we have received.”