The Financial Services Compensation Scheme (FSCS) is investigating a Newport-based adviser linked to the British Steel Pension Scheme (BSPS) scandal.
The firm, Niche Independent Financial Advisers Ltd, is run by the founder of Cash Calc, Ray Adams, and, according to the FSCS, stopped trading in early May. The firm had previously traded as Niche Pension Specialists.
FTAdviser reported that it had seen a letter detailing that the company’s board of directors had decided to start liquidation proceedings given its financial position.
The Financial Conduct Authority (FCA) register highlights that the firm has been authorised since November 2007.
Niche Independent Financial Advisers Ltd is a separate company from Niche Sport & Finance Limited, which trades as Niche IFA, although the FCA register shows both companies are based at the same address.
At the time of writing, the FSCS was accepting claims against Niche Independent Financial Advisers Ltd. However, it asks people to input their advice and product start dates before disclosing if they may be able to claim.
It is currently unclear how many claims related to the BSPS or other schemes Niche Independent Financial Advisers Ltd may face.
What is the background of the BSPS scandal?
As part of a restructuring of the BSPS in 2017, pension scheme members were asked to decide whether to keep or transfer their pension. As a result, 8,000 BSPS members chose to move their pensions out of the scheme in transfers totalling approximately £2.8 billion.
Unfortunately, it quickly became apparent that a significant volume of the financial advice provided to transferring members was unsuitable.
Following years of work and investigations, in late 2022, following a consultation, the FCA unveiled its BSPS redress scheme.
While the redress scheme aims to return ex-BSPS members to the position they would have been in at retirement had they not transferred out, that outcome won’t be the reality for many whose advisers fail, leaving them to seek compensation from the FSCS, which has an £85,000 compensation cap.
Any Niche Independent Financial Advisers Ltd clients who lost some or all of their pensions after receiving unsuitable advice from the firm will likely find themselves in this position.
If your adviser fails, LawPlus Solicitors can help
If your adviser goes out of business before you make a complaint against them or while your complaint is pending, you can still claim pension mis-selling compensation.
Contact LawPlus Solicitors now for a free, no-obligation review of your pension transfer advice or pension product, and take the first steps to getting the compensation you deserve.