The UK’s financial watchdog “commenced proceedings” against two unregulated pension introducers this year as it battles to stop the public from falling victim to scams.
The unregulated introducers were involved in the transfer of at least £86m in pension assets from more than 2,000 consumers.
The FCA told Portfolio Adviser sister publication International Adviser: “We have issued civil proceedings against Avacade (in liquidation) and Alexandra Associates (UK) and against three individuals Craig Lummis, Lee Lummis and Raymond Fox.”
“The FCA is seeking injunctions, declarations and restitution orders to prevent further breaches in schemes which were unlawfully promoted to the public using false, misleading and deceptive statements,” the FCA’s executive director of market and enforcement oversight, Mark Steward, said.
Don’t get scammed
Steward highlighted the Financial Conduct Authority’s recently launched Scamsmart campaign in its Regulation round-up newsletter for August.
He emphasised the importance of the campaign as people can lose their life savings and be left with limited income when nearing retirement.
The most common way for introducers to snare victims is to offer a free pension review, with research revealing that one in eight pension holders aged 45 to 65 would likely trust such an offer.
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