Carey Pensions – Case History
Carey Pensions is a landmark case involving the UK pension provider. The case received much attention due to allegations of mis-selling and unsuitable investments within the company’s SIPP (Self-Invested Personal Pension) schemes.
Russell Adams vs. Carey Pensions UK
On recommendation from Spain-based CLP Brokers, Russell Adams transferred his existing pension pot into a SIPP administered by Carey Pensions UK LLP. Adams was instructed by Carey to invest his fund into unregulated investments (leases of store pods), which performed very poorly.
A sum of £4,000 was paid into his savings account to encourage him to put money into the rental scheme Store First.
He then transferred £50,000 into a Store First investment on 12 June 2012, resulting in significant financial losses.
Adams made a claim against Carey for loss of value in an investment that was held within a SIPP. He argued that they were responsible for the losses to his pension and should not have accepted his business.
Although the original decision went in favour of Carey Pensions, the Court of Appeal ruled that the SIPP had been set up unlawfully, and Carey Pensions was ordered to return the monies invested.
This case was notable because it ruled that the SIPP provider is responsible for the suitability of the investment into which a client’s funds are placed.
The Financial Ombudsman Service (FOS) has since received numerous complaints from individuals who had invested their pension funds through Carey Pensions SIPP and suffered financial losses.
March 2018 – Russell Adams brought proceedings against Carey
May 2020 – Judge ruled in favour of Carey in a decision that was welcomed by the SIPP industry.
September 2020 – Court of Appeal granted Adams permission to challenge the initial ruling on two grounds: the critical issues raised and the delay in producing the original judgment.
April 2021 – The Court of Appeal decided against Carey Pensions. The judges unanimously agreed with Adams that Carey should be liable for the losses.
April 2022 – The Supreme Court denied Carey Pension (now called Options UK Personal Pensions LLP) the right to appeal, meaning the decision in favour of Mr. Adams would stand.
Have You Been Mis-Sold a SIPP By Carey Pensions?
You may have been a victim of pension mis-selling if the following applies to your case:
- You were cold-called by an advisor or pressured to move your pension to a Carey Pensions pension.
- Your Carey Pensions advisor did not fully inform you of the risks of the pension transfer, and you feel like you were misled.
- You were not told that you were about to invest in a risky SIPP, unregulated by the Financial Conduct Authority (FCA).
If you have suffered financial losses due to high risk SIPP investments, you are not alone. Allow our team of legal experts to help you make a successful claim today.
Please fill out the contact form and have a free assessment by one of our experts. There’s no obligation to use our service.
Carey Pensions, a UK-based SIPP provider, has posted a loss of £153,800 in 2016 due to an increase in the number of claims it faces.
The Milton Keynes based SIPP provider specified in its financial statements that they attributed the move to the loss to ‘a number of complaints and legal cases relating to some historic business which is now being run down’. The Chief Executive of Carey Pensions, Christine Hallett, couldn’t comment on the nature of the claims further on the potential value of the complaints or legal matters because they were ongoing cases. She stated: ‘These matters relate to investments into Sipps made on an execution only basis in the period 2011-13’.
Last year, administrative expenses at Carey Pensions increased to £1.8 million, a £0.2 million increase from 2015 (£1.6 million).
A full overview can be found on the City Wire website.
Carey Pensions UK LLP
Carey Pensions are based at: 1st Floor, Lakeside House, Shirwell Crescent, Furzton Lake, Milton Keynes, MK4 1GA.
Carey Pensions UK LLP is registered in the UK under Partnership Number OC345142 and authorised and regulated by the Financial Conduct Authority, number 501747: View Their FCA Details Here
Carey Corporate Pensions UK is registered in the UK under Company Number 09358998. The Carey Workplace Pension Trust is regulated by The Pensions Regulator: http://www.thepensionsregulator.gov.uk/
For more information, please contact us using the form here.
You may be eligible to claim if…
You were advised to transfer away from a Final Salary Company Pension.
Your new pension was not compared to a low cost stakeholder pension.
You were advised to transfer to a Self-Invested Personal Pension (SIPP).
Your investments were in non standard assets.
You were not given annual reviews, ongoing support and projections.
You were transferred away from a pension that had a higher tax free cash limit.