HT Legal Ltd secures landmark pension compensation for client

Legal firm wins landmark pension payout, setting precedent for compensation shortfalls | Unsplash

Legal firm has achieved a notable victory for a client.

HT Legal Ltd successfully secured an additional £145,000 in pension compensation from a pension provider. This outcome follows an earlier claim through the Financial Services Compensation Scheme (FSCS), which had left the client with a significant financial shortfall.

After nearly three years of waiting for compensation, the client faced considerable losses due to poor financial advice. In 2014, they were persuaded to transfer their standard pension into a Small Self-Administered Scheme (SSAS), typically used by business owners and senior employees. Unfortunately, the scheme was misused, leading to an investment in an unregulated collective investment scheme (UCIS) and a total loss of around £145,000.

While the FSCS upheld the complaint against the financial adviser and awarded the maximum payout of £85,000, the client was still left with a £65,000 shortfall. HT Legal's investigation revealed that the financial adviser had failed to sign essential pension transfer paperwork, highlighting a lack of due diligence from the pension provider. Under The Pensions Regulator’s Scorpion initiative, introduced in 2013 to combat pension scams, providers are required to conduct strict checks on non-advised pension transfers—checks that were not followed in this case.

In September, HT Legal filed a formal complaint with one of the UK's top five pension providers. The provider quickly acknowledged its error and committed to restoring the client’s pension, agreeing to establish a new scheme and replenish the funds to the level they would have been had the transfer never occurred.

Tony Carter, Managing Director of HT Legal Ltd, stated: "This is an absolutely wonderful result for our client, who is over the moon. We are incredibly grateful to the pension company involved for being transparent and responding quickly with decisive action. This sets a positive example, as all too often companies try to delay or deter clients from pursuing their complaints. This behavior can lead to escalated legal fees for our clients, especially if matters have to be pursued through court."

This win not only benefits the client but also the FSCS, as the £85,000 paid out will now be refunded by the pension provider, alleviating some strain on the scheme amid a rising number of claims.

HT Legal currently has over £4.8 million in claims pending against various pension providers under similar circumstances. These cases could lead to approximately £3 million in potential refunds back to the FSCS and £1.8 million in further compensation for HT Legal’s existing clients.

Carter added: "I urge anyone who has not received full compensation on their pension claim to contact us. You may well be eligible to make a further claim and get the full financial redress you deserve."

For more information about HT Legal Ltd, visit their financial services claims website at http://claimmyloss.co.uk.