April 1st 2021 the Court of Appeal have overturned a previous High Court ruling and found against Carey Pensions in relation to providers responsibility when accepting investments into a SIPP.
In May 2020, Russell Adams alleged Carey Pensions mis-sold him a SIPP using an unregulated introducer to facilitate investments into Store First- a high-risk investment which now holds no value. His case was dismissed with part of the reason being the offer of an incentive payment which gave an upfront lump sum for choosing to invest, given this, they suggested he would have gone ahead anyway. However, in a judgment published April 1 2021, the Court of Appeal unanimously overturned this decision and found Russell Adams was advised in contravention of the Financial Services and Markets Act 2000 by CLP Brokers, an unregulated introducer based in Spain. The court said at no time was CLP Brokers authorised by the FCA to give investment advice or to make arrangements relating to investments.
The court declared that because the SIPP was entered into because of CLP Broker’s actions, the SIPP agreement is unenforceable against Russell Adams, and he is therefore entitled to ‘unwind’ it. This means he can recover the money he paid into it in addition to compensation reflecting the losses he has suffered as a consequence.
This means that SIPP companies are now liable for client losses suffered as a result of investing in schemes because of unregulated advice.
If you have been involved with Carey Pensions or any other SIPP company as a result of receiving unregulated advice, we would be happy to investigate your potential to claim and ensure you stand to receive maximum compensation.
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Tower Hill Group Ltd is a limited company registered in England & Wales, registration number 12620190.
Tower Hill Group Ltd is registered with the Information Commissioners Office (ICO), registration number ZA760652.
The registered office is Kemp House, 152-160 City Road, London, UK, EC1V 2NX.