The Financial conduct authority has begun legal proceedings against the directors of Estate Matters Financial, due to negligent pension transfer advice for defined benefit pensions in particular according to City Wire.
A defined benefit pension, also known as a DB pension scheme is a scheme where you are paid based upon how many years in service you have worked for the employer for in conjunction to the salary you earned. DB pensions have historically been provided by both private and public-sector organisations. Although it is said that final salary pensions are in decline, millions of people still hold them according to which.com.
As stated by the Office for National Statistics, 1.3m people are actively contributing, and 11.8m have a DB pension they will be able to claim in future.
The advice firm located in Gateshead went into liquidation in June 2020, have allegedly contravened many errors that lie under the Financial Services Markets Act 2000.
The unsuitable defined benefit transfer advice from Estate Matters, led clients to proceed onto exiting from their existing DB pension scheme. This transfer did not meet the customers suitability; which has led to some customers suffering from financial losses.
The restitution order requested via the FCA has been aimed towards the directors of Estate Matters Financial, Paul Steel and Jacqueline Foster. The order is further backed by the breach of FCA requirements, due to the director removing assets of Estate Matters for personal financial gain.