header-logo header-logo

18 May 2018 / Nicholas Hill , Gus Baker
Issue: 7793 / Categories: Features , Pensions
printer mail-detail

Pensions: cracks in the system

nlj_7793_hill_0

Nicholas Hill & Gus Baker report on pensions mis-selling, chicken & chips, ‘dubious advisers’, & a new wave of litigation

  • New legislation has changed the ability of people to access their pensions.
  • The evidence suggests that a major mis-selling scandal is erupting.
  • This note considers the legal landscape as pensions and financial services litigation intersect.

Between 2015 and 2017 it is estimated that 220,000 Defined Benefit (DB) pension scheme members transferred over £50bn out of DB schemes. Many of those transfers will have been on the basis of expert, regulated financial advice. Regrettably some scheme members were (according to the Work and Pensions Select Committee) ‘exploited for cynical personal gain by dubious financial advisers in tandem with parasitical so-called “introducers”’.

Practices reported in respect of transfers out of the British Steel Pension Scheme included invitations to ‘curry and chips’ or ‘chicken and chips’ events. One firm was moved to write to the Work and Pensions Select Committee to correct the Committee’s understanding about meetings it held—the firm noted

If you are not a subscriber, subscribe now to read this content
If you are already a subscriber sign in
...or Register for two weeks' free access to subscriber content

MOVERS & SHAKERS

Clyde & Co—Suriya Ashok

Clyde & Co—Suriya Ashok

Clyde Co strengthens energy transition and construction offering with hire of Suriya Ashok

Jurit—Nicole Gallop Mildon

Jurit—Nicole Gallop Mildon

Jurit appoints rare dual-qualified lawyer to expand Anglo-French private wealth expertise

NEWS
The Financial Reporting Council’s revised Audit Enforcement Procedure will alter the balance of power in corporate investigations
A telecoms operator may be able to hold over under the Landlord and Tenant Act 1954, yet still be unable to secure a renewal: an outcome described as a legal ‘paradox’

Safety fears do not automatically justify shutting an interested person out of a statutory will application

Consumer credit law is heading for its biggest shake-up in 50 years, with the Consumer Credit Act 1974 set to yield much of its detailed statutory machinery to FCA rules
The Supreme Court has settled a long-running dispute over part-time workers: unfavourable treatment need be a significant or effective cause, not the sole cause
back-to-top-scroll