Tired of the constant worry over the security of your pension or investments and whether you’ll have a financially secure retirement? The Greyfriars SIPP saga has left many with more questions than answers, but there is a beacon of hope. As the quest for compensation gains momentum, you have the opportunity to join the ranks of proactive investors seeking to remedy their losses.
Don’t miss your compensation opportunity. If you have invested with Greyfriars, whether through a self-invested personal pension (SIPP), discretionary fund management, or any other investment service, the time to seek what is rightfully yours is now.
Get in touch with one of our dedicated team members at Pension Justice
Call us on 0800 014 8275
The Impact on Self-Invested Personal Pensions (SIPPs)
The concept of self-invested personal pensions (SIPPs) has become increasingly appealing because of the flexibility and control it offers over retirement funds. However, with Greyfriars’ entry into the high-risk investments market, clients with SIPPs managed by the firm encountered considerable risk.
The Story of a Misled Investor
Our client, a 56-year-old lady from East Sussex, found herself amidst a financial debacle following what she believed to be sound investment advice.
In 2013, our client was offered a free pension review, a seemingly harmless offer that soon escalated into a distressing financial affair. Our client was contacted by Dean Smith from Insight Financial Associates, under the umbrella of My IFA Friend Limited, who led her to transfer her pension from Legal & General to a SIPP managed by Greyfriars, specifically to invest in Manchester Terminal 2 Hotel Limited—a classic case of high promise yet mis-sold financial products.
Her trust in the Greyfriars Asset Management portfolio led her to make an ill-fated investment in Manchester Terminal 2 Hotel Limited B Bonds on 6 November 2013, totaling £86,000 after transferring £92,343 from her Legal & General pensions.
We represented our client in connection with a claim for compensation and recovered the sum of £50,000.00 on her behalf.
If any person has invested any monies in Manchester Terminal 2 Hotel Limited, whether through a SIPP or otherwise, we would urge them to contact us without delay as compensation may be payable.
Overview of Greyfriars and What Went Wrong?
Courtesy: Pixabay
Greyfriars Asset Management LLP offered Discretionary Fund Management (DFM) services to its clients. Claims submitted to FSCS against Greyfriars typically relate to several investment portfolios. The portfolios were numbered from one to six. The FCA had previously expressed concerns about Greyfriars’ Portfolio Six offering in particular (1).
Shortly before going into administration in October 2018, Greyfriars sold the advisory arm of the business to Insight Financial Associates. They then went on to agree on the sale of their SIPP book to Hartley Pensions and wound down their DFM service in 2017.
FSCS began accepting claims against Greyfriars in February 2019.
Amidst these developments, Gaudi Regulated Services Limited(3), a firm known for its SIPP administration, also faced its share of challenges, contributing further to investor woes and eventually leading to the appointment of joint administrators to oversee its insolvency proceedings. This has caused additional concern for clients who had SIPPs managed by Gaudi as their SIPP provider.
What made Portfolio Six controversial?
- High-Risk Investments:
Portfolio Six included a range of non-standard, high-risk, illiquid assets (2). These often involved unregulated schemes and speculative ventures such as overseas property developments, storage pods, and biofuel investments. - Mis-Selling Allegations: There were allegations that investments within Portfolio Six were mis-sold to clients. Clients claimed they were not fully informed about the risks associated with the investments or that the investments were unsuitable, given their risk profiles.
- Regulatory Intervention: The Financial Conduct Authority (FCA) in the UK intervened by restricting Greyfriars from accepting new money into Portfolio Six in 2016. This was a response to concerns regarding the firm’s investment practices and the nature of the products included in the portfolio.
If you were an investor in Greyfriars’ Portfolio Six, or if you acquired any high-risk investment through a SIPP or other pension vehicle, you might be entitled to seek compensation, especially if the investment was not aligned with your risk tolerance or if the product was mis-sold to you. It’s crucial to seek professional advice to understand your options and take appropriate action.
There Is Hope After Greyfriars
Navigating the complexities of financial decisions can be daunting, but even in adversity, there is room for hope and recovery. Pension Justice is committed to walking with you on the path to reclaiming your financial future. If you’ve been entangled in a mis-sold investment, we invite you to contact us. Your journey to a successful claim and peace of mind begins with three easy steps of reaching out for assistance.
Footnotes:
(1). https://www.fscs.org.uk/making-a-claim/failed-firms/greyfriars/
