CityWire reported yesterday that Succession Wealth has set aside £10.5m to compensate for unsuitable defined benefit (DB) pension transfer advice.
The provision, included in financial statements for 2021, relates to an advice firm Succession acquired.
A spokesperson for Succession said: ‘This provision relates purely to advice given by a firm prior to its acquisition by Succession and we have been working closely with the FCA on the matter.’
Succession has reported that the financial statements in which a third party has completed case reviews for the firm in question, reviewed that the advice was not in the client’s best interest, and compensation is being calculated by a firm of consulting actuaries.
Looking at the actuarial estimate and known cases the range of compensation cost lie between £9m and £11m.
Succession is not the only national facing DB transfer redress payouts. Openwork said in July it expects to pay compensation for claims made by British Steel Pension Scheme members, and Quilter has set aside £29m for DB transfers carried out by Lighthouse advisers.
In July, Aviva announced the promotion of Michele Golunska to managing director of wealth and advice, a role that includes overseeing Succession.
Smooth Commercial Law has extensive working knowledge of the FSCS and the process to achieve a successful outcome for clients having submitted a significant number of claims. The FSCS has protected more than 4.5m people and paid out £26bn in compensation.
Should you have a claim for negligent financial advice, we can deal with your case and look to recover compensation for not just your loss of investment but also any adverse tax liabilities that you may now be facing as well.
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