Pembrokeshire Mortgage Centre has been fined almost £2.4 million by the Financial Conduct Authority (FCA) for advising customers to give up their valuable pensions.
The financial company provided unsuitable advice to approximately 420 consumers, suggesting that they opt out of several plans, including the British Steel Pension Scheme.
The company earned over £2 million in transfer and continuing advice fees. The FCA stated that the majority of people should retain the guaranteed income offered by the defined benefit (DB) pension plan.
DB schemes are designed to guarantee people a specific income level in their retirement, based on their current salary. It can be a valuable investment with many advantages that are not possible to replicate with other investments. Experts in retirement planning in Shropshire, Derbyshire and other parts of the county help employed people prepare for the day they stop working to ensure they have adequate provisions. Wealth managers not only offer pre-retirement planning services, but also help with post retirement advice, adapting plans to suit changing financial circumstances and needs to keep them on track.
According to the FCA, the transfer value for each customer was, on average, around £293,000. Since November 30, the UK’s Financial Services Compensation Scheme (FSCS) has now upheld 213 pension transfer claims made against Pembrokeshire Mortgage Centre and shelled out over £13.3 million worth of compensation.
Many consumers advised were vulnerable because of uncertainty surrounding the British Steel Pension Scheme’s future, but the FCA found that 60 per cent did not receive advice of the quality required to make an informed choice.
