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This is why you should use an IFA. A national IFA firm transferred a client's pension into a SIPP and used the funds to buy minibonds in Real Estate Investments USA, Lakeview UK Investments PLC, Tambaba Investments Ltd and Strategic Residential Development PLC. (1st of 8 tweets.)
These minibonds have been pushed by Steven Wright and his firm Cherish. The client complained in 2017 without an IFA's help before he met us. Unfortunately, he didn't frame his complaint correctly, the firm dismissed it and he didn't go to the FOS. He lost most of his pension.
The client was referred to us by Wakefield Council. We partner with the council to advise clients on breathing space loans aimed at preventing repossessions. Our fact-find turned up the p[ension problem. The client had accepted the loss and thought nothing more could be done.
He didn't even tell us he'd complained previously. We were sure at a glance it was a mis-sale and a deeper investigation confirmed it so we asked the other firm - a large national IFA - to look at it again. They refused., saying he'd had his chance and hadn't gone to the FOS.
We disagreed. His complaint had been on completely different grounds because he didn't understand what the problem was. They could have played it straight and said "Hey - we shouldn't have put you into those dodgy minibonds" but they chose not to.
So we put it to the FOS and last night we had confirmation from the FOS that it is willing to look at our client's case. We are confident we'll win it and the firm will have to compensate him. Okay, IFAs aren't perfect and the one who put him into minibonds certainly wasn't.
However, the fact that he did use a regulated adviser has meant that he does have access to the FOS and if the other firm fails he will also have access to the FSCS and it's being put right for him by an IFA firm - ours - which also holds claims management permissions.
So it makes sense to use an IFA, and nobody should assume you have to be rich, because you don't. Sure, some firms will only take big-money clients, but a lot more of us are democratising advice for everyone. Independent advice is available. There's no excuse for not taking it.
