St. Martin's Partners, based in Essex, used an unregulated introducer model to attract clients looking to transfer their pensions. The Financial Conduct Authority (FCA) has decided to ban four individuals associated with an advice firm that facilitated the transfer of clients' defined benefit (DB) pensions into high-risk investments, including a property scheme in Cape Verde operated by The Resort Group.
The inappropriate advice provided to former St. Martin's Partners LLP clients, which went out of business in July 2019, has cost the Financial Services Compensation Scheme (FSCS) £13.2 million. Two advisers and two partners from the Essex-based firm have received decision notices imposing a combined fine of £590,544. Three individuals, Adrian Douglas, Liam Martin, and Frank Oxberry, have contested the decision, meaning the regulator must present its case to the upper tribunal before any action is taken.
Another individual, Alec Cuthbert, has accepted a £91,693 fine and a ban from working in regulated businesses. Cuthbert and Oxberry were partners at the firm, while Martin and Douglas were advisers with permission to handle pension transfers.
According to the FCA, between October 2015 and July 2016, St. Martin's Partners put 547 customers at significant risk of transferring out of guaranteed DB pensions into unsuitable investments, including investments in hotel developments in Cape Verde offered by The Resort Group Plc. The regulator stated that most of these clients were introduced to the firm by unregulated introducer companies, including one called First Review Pension Services Ltd, which was a subsidiary of The Resort Group. The high-risk investments associated with the Resort Group have been connected to the collapse of several pension companies.
Smooth Commercial Law have been helping clients recover their losses from pension transfers and have success getting clients their pension funds back that have been invested in The Resort Group.
If you want a brief informal chat to understand your options on any pension or investment loss then call us at 0800 046 9976 or email us at info@smoothcl.co.uk If you prefer you can fill out our quick online inquiry form and one of our financial loss lawyer experts will contact you promptly.
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