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In the labyrinthine world of financial advisory, trust is the currency upon which financial futures are built. However, when trust is betrayed, its reverberations are felt far and wide.
Enter Arrow Financial Services, an independent financial advisor that has been thrust into the spotlight due to its involvement in a storm of mis-sold pension controversies. As we explore the depths of the mis-sold pensions debacle surrounding Arrow Financial Services, we discuss the fragility of ethical practices and the ripple effects of their absence.
Let's start with the dissolution of Arrow Financial Services Ltd on 22nd June 2022. Yet, this is only the tip of the iceberg. This Chester-based firm's entanglement in the British Steel pension scheme has propelled it into notoriety. The recent demise of Arrow Financial Services UK, operating in the capacity of an independent financial advisor, points to a larger trend in the industry.
The impact of Arrow Financial Services' advisory practices reverberates throughout the timeline of financial guidance. The British Steel Pension Scheme (BSPS), a backdrop of this drama, witnessed an influx of former members seeking counsel at the close of 2017.
This critical juncture offered the choice to remain in a defined benefit pension scheme, transition to a new option, or embark on a transfer. What seemed like a pivotal decision soon evolved into a legacy marred by unsuitable advice. If you would like to read more about The British Steel Pension Scheme, please click here.
The Financial Conduct Authority (FCA) stepped in to address the tide of unsuitable advice that emerged from the BSPS restructuring. The fallout from ill-advised decisions saw the launch of a redress scheme, aimed at remedying the financial damage inflicted upon unsuspecting members.
The FCA's intervention serves as a testament to the industry's responsibility in safeguarding clients' financial well-being and the FCA authorisation was removed on 4th October 2021.
Arrow Financial Services UK's story is one of a firm on a trajectory from dissolution to investigation. As the Financial Services Compensation Scheme (FSCS) turns its lens on the firm, the question looms: were Arrow Financial Services Ltd's activities regulated and did they give rise to valid claims?
This led to Arrow Financial Services being placed under investigation by FSCS in April 2023. The story is a stark reminder that every financial advisory decision carries profound consequences, extending even beyond the lifetime of the firm.
The tale of Arrow Financial Services is a call to action for the industry at large. Its dissolution, coupled with its association with the British Steel Pension Scheme, serves as a cautionary tale on the importance of ethical financial advisory. As the industry evolves, it's crucial to remember that the decisions made within it ripple through time, impacting not just clients but the fabric of the profession itself.
The FSCS told The Professional Adviser that, as of mid August 2023, FSCS declared Arrow Financial Services officially failed and informed us that it had received four claims against Arrow Financial Services.
Amid the aftermath of mis-sold pensions, finding a path to justice can be a complex endeavour. At CP Financial Claims, we stand ready to guide you through this intricate terrain.
If you find yourself entangled in the web of mis-sold pensions, our dedicated team is here to provide the support and expertise you need to navigate the challenges. With a deep understanding of the industry and a commitment to upholding your rights, we offer a lifeline for those seeking to reclaim their financial security.
Contact us today, via the form below, for a free, no-obligation chat.
You are not obliged to use our service. It is possible for you to present your claim for free, either to the firm, or person against whom you wish to complain, or to the statutory ombudsman (Financial Ombudsman Service or Pension Ombudsman Service) or the Financial Services Compensation Scheme, whichever is applicable to your claim.
