MFS and Capital & Income Solutions
If you have been given pension transfer or investment recommendations by Mike Connelly, Managing Director of the Mortgage Finance Store (MFS) based in Dundee, you may be a victim of poor or faulty advice.
Unfortunately, neither the firm or Mr Connelly hold the necessary FCA permissions permitting them to give professional guidance on these matters. The firm’s entry on the FCA register makes this clear.
The MFS have been particularly active when it comes to advising their clients to transfer away from their workplace defined benefit schemes (DB schemes). These types of pensions come with huge benefits and guarantees, and the Financial Conduct Authority (FCA) states the starting position should always be that moving away for DB pension holders is not a good idea. Only in a minority of cases should a transfer be considered suitable.
It’s a sad fact that many holders of these extremely valuable pensions have not been made aware of the full facts or the options open to them. Were you? Find out the facts and fiction of defined benefit transfers.
Extortionate fees and transfer charges
The FCA have expressed deep concern about the numbers of people transferring away from DB pension schemes and the fees being charged to do so. So much so that they are now consulting about completely banning contingent charging (fees being charged dependant on pension holders moving) and limiting initial advice fees to as little as £3,500.
Typically, Mr Connelly facilitated his pension transfer advice through Capital & Income Solutions based in Leeds, using Royal London. An initial fee 4% of the Cash Equivalent Transfer Value (CETV) was normally charged. On a fund of £600,000 this would represent a fee of £24,000, which dwarfs the FCA’s suggested figure of £3,500.
Even more worryingly, Capital & Income Solutions had their pension transfer permissions removed at the end of June 2019 and just two days later the FCA served them with an Asset Retention order. Both of these facts can be confirmed by viewing their page on the FCA register and checking under the ‘Permissions’ section.
Capital & Income Solutions have already had three Financial Ombudsman decisions upheld against them. All of these cases involved the use of a SIPP and in two instances, the involvement of a mortgage broker and the additional recommendation of an investment bond.
Read the complaints in full:
If you have taken any pension or investment advice from Mike Connelly and the Mortgage Finance Store and are now concerned that you may have been a victim of faulty advice, Beat the Banks are here to help. We can even re-construct any defined benefit transfer that’s taken place since April 2015 to see if you have lost money. To find out more call us on 01382 200474.