If you are one of the many pension holders who trusted Brooklands Trustees Limited with your money and lost out, you may be entitled to compensation and the team at Beat the Banks can help you claim it.
Established in March 2006, Brooklands Trustees lapsed into administration in July 2016. By this time the Brooklands SIPP had 5,500 members from all over the world and funds under management of £650 million. A pre-pack arrangement realised £425,000 and saw their SIPP book sold to Heritage Pensions.
How did it all go wrong?
The problems started with Brooklands’ policy of only accepting business from advisors who held an introducer agreement with them. One such being FCP Insurance Consultants, who were signed up in 2009 and had no authorisation from the UK Regulator to provide pension advice. Their favoured destination for SIPP funds was the LMMP fund (LM Managed Performance fund), an Australian Property Fund which paid a tidy 9% up-front commission.
It was a classic case of the horse already bolting from the stable when Brooklands realised that FCP Insurance Consultants weren’t actually authorised. Undaunted, FCP simply agreed a ‘piggyback’ deal in late 2012 with UK-regulated firm Universal Wealth Management (UWM) allowing them a route to continue introducing even more deals. Extensively sold to expats all over the world, the LMMP fund finally collapsed in spectacular style in 2013 with investors told they were likely to receive no more than 5p for every £1 previously invested.
Brooklands’ failure to apply basic due-diligence on an unregulated introducer saw them enter Administration in August 2016 following 20 claims totalling £1.6m being upheld against them by the Financial Ombudsman Service (FOS). In January 2018, Brooklands along with Stadia Trustees Limited and Montpelier Pension Administration Services Limited were declared to be in default by the Financial Services Compensation Scheme (FSCS). The FSCS reported combined claims for all three being in the region of 150, with significantly more claims expected in 2018 and 2019.
If you transferred your pension into a Brooklands SIPP, our expert advisers would like to hear from you. Complete an enquiry form or call us on 01382 200474 to find out what we can do for you.