Grosvenor Butterworth was a Cardiff-based financial advice firm that was forced to shut its doors after the FCA grew concerned about its advice regarding pension transfers and investments.
Directed by Tom Cumming, the company was established in 1992 and, according to their website, promised customers “creative, innovative and efficient solutions for all manner of financial instruments and problems, irrespective of the complexity.”
Unsatisfactory pension advice
Amid growing concerns about the firm’s activities, the FCA issued them with a section 166 review in June 2017. This meant the firm had to suspend much of its regulated activities – including advising on pension switches and transfers – while their processes were reviewed. Subsequent to this review, the FCA expanded their restrictions and ordered Grosvenor Butterworth to cease all regulated trading.
The FCA took this action after finding their pension advice to be unsatisfactory, particularly with regards to the firm’s relationship with the discretionary fund manager Beaufort Securities. It appeared that Grosvenor Butterworth had recommended their clients invest some or all of their pension savings with Beaufort Securities Investment Portfolios, some of which included unsuitably high-risk Unregulated Collective Investment Schemes (UCIS).
Mr Cumming pleaded innocent to mis-selling pension investments, laying the blame squarely on Beaufort Securities’ shoulders. He claimed Beaufort had been moving clients out of portfolios that matched their risk profile and into portfolios that carried unsuitably high levels of risk without his firm’s knowledge.
The order to cease regulated trading effectively strangled Grosvenor Butterworth’s business and the firm began winding up at the beginning of 2018. They were also declared in default by the Financial Services Compensation Scheme (FSCS) in the same year, and the FSCS has since upheld several claims against the firm.
Do you have a claim?
If you were talked into investing some or all of your pension savings into high-risk portfolios by Grosvenor Butterworth or another independent financial advisor, you may be entitled to compensation.
Our team at Beat the Banks can analyse your situation and establish if you have grounds to make a claim. Call us on 0800 193 1234 for a free, no-obligation chat about what we can do for you.