Find Us

87 Commercial Street,

Dundee DD1 2AB

Black Star Wealth Management

Black Star Wealth Management

Black Star Wealth Management was finally declared as being in default by the FSCS on the 14th January 2020.

Formerly based in Sutton Coldfield, they entered administration in 2018 after being stripped of their pension transfer permissions by the Financial Conduct Authority (FCA) and banned from having any involvement in non-mainstream investments/ non-standard assets through SIPPs. The FCA action followed growing concerns over Black Star’s professional conduct, particularly with regard to inappropriate SIPP link investment advice.

Overstating clients’ capacity for loss

It was established that Black Star had been overstating pension holders’ attitudes to risk and capacity for loss and often without any credible rationale for the advice they recommended. They were also guilty of relying on Attitude to Risk questionnaires provided to them by the likes of unregulated introducers such as Avacade link and not meeting face to face with clients.

Funds were often placed into unregulated, illiquid assets (UCIS) link via SIPPs, putting their clients’ pension savings at significant risk. The collapsed Discretionary Fund Manager (DFM) Beaufort Securities Limited was used by Black Star. Funds recommended included –

Colonial Capital Group PLC Corporate Bonds
Alpha Business Centre (ABC) Bond
Store First
Dolphin Capital (now the German Property Group – GPG)
Paraiba Projects Mini Bond
Silex (UK) PLC
Hydrology PLC AKA Nexus Water Bonds and Water Bonds PLC
Yumchaa Holdings PLC

Many of these investments have either now failed or have huge question marks over their continued viability. Little wonder then that prior to their demise, Black Star had been subject to a substantial number of claims for faulty advice through the Financial Ombudsman Service (FOS).

If you believe that you may have been a victim of poor pension advice from Black Star Wealth Management then the team at Beat the Banks would like to hear from you. To find out more call 01382 200474 for a no-obligation chat or complete our enquiry form on this page and we will be in touch.

    Book a FREE Callback

    or Enquire now

    Black Star Wealth Management
    Article Name
    Black Star Wealth Management
    Publisher Name
    Publisher Logo
    Web Design By Purple Imp
    × How can I help you?