Avacade Limited and Alexandra Associates (UK) Limited
Avacade Limited and associated companies operated as unregulated introducers for a number of advisory firms and individuals. For years, they wrongly referred customers for pension transfers and many lost money as a result. Those involved may now be entitled to compensation and the team at Beat the Banks are ready to help.
What’s the story?
Operated by the father and son team of Lee and Craig Lummis along with Raymond Fox, Avacade Limited, trading as Avacade Investment Options, was wound up in November 2015. Although Lee and Craig Lummis continued to trade through Alexandra Associates (UK) Limited, under the name of Avacade Future Solutions.
Both companies operated as unregulated introducers, passing pension transfer business to a number of independent financial advisers (IFAs) including Cherish Wealth Management, appointed reps of Shah Wealth Management and Black Star Wealth Management. They offered potential customers a free, non-advised pension report, the results of which were skewed to entice them to transfer their funds into Self-Invested Personal Pensions (SIPPs) and invest in a host of alternative investments.
It’s believed that Avacade (in both its guises) made arrangements with a number of SIPP providers, such as Liberty SIPP, to introduce and process a raft of Unregulated Collective Investment Schemes (UCIS). Variously these are said to include:
Operating without FCA authorisation
Following an investigation, the Financial Conduct Authority (FCA) accused Avacade of providing “misleading statements”, carrying out “regulated activities in the UK without FCA authorisation or exemption”, and communicating “financial promotions without the required authorisation or approval.”
At the end of 2017, the FCA launched civil proceedings against Avacade and Alexandra Associates together with Craig Lummis, Lee Lummis and Raymond Fox as individuals. This is split into two trials: the first to prove liability, and the second to determine the total loss suffered by investors – an estimate puts this figure at £86 million in pension assets across 2,000 individuals.
The first trial is due to commence in January 2020, and the FCA has written to all former clients of Avacade advising of the impending court cases.
If you’ve been recommended by any of the Avacade brands to transfer your pension into a SIPP and have lost money, the team at Beat the Banks are here to help. We’ve got experience dealing with all manner of compensation claims and are ready to fight your corner. To find out more call us on 0800 193 1234.