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In the intricate world of financial advisory services, trust is paramount. Clients rely on the expertise and integrity of financial advisors to secure their future financial well-being. However, recent revelations have cast a shadow over a prominent player in the financial advisory network, Pi Financial Ltd, a firm based in Shrewsbury.
The firm, which has operated under various trading names, has come under scrutiny due to a series of mis-selling claims involving pension transfers. This article delves into the controversy surrounding Pi Financial and the mis-selling claims that have marred its reputation.
In a disheartening turn of events, Pi Financial Ltd was ordered by the Financial Ombudsman Service (FOS) to provide compensation to a former client, referred to as ‘Mr. M’, who alleged being "wrongly advised" to transfer his pension. The focus of Mr. M's complaint was the advice he received from a representative of Pi Financial to move from his three existing personal pensions into a self-invested personal pension (SIPP).
A notable facet of his successful complaint was the failure of Pi Financial to inform him adequately about the true costs associated with the new arrangement, which ultimately resulted in unnecessary fees. Mr. M further contended that the recommended pension plan was significantly more complex than his previous pension arrangements, adding to his financial woes.
In November 2017, following the acquisition of policy information about Mr. M's existing arrangements, Pi Financial issued a suitability report, advocating for the diversification of his pension and investment in 'exciting asset classes,' while labelling his current pensions as 'frozen.'
This particular complaint is not an isolated incident but part of a concerning pattern. Over the past year, the FOS upheld several similar complaints against Pi Financial Ltd, due to the advice given by Pi's representatives, shedding light on their questionable advisory practices and diligent processes.
Pi Financial concerns are linked to advice and acquaintance with the following pension providers: Carey Pensions, Options UK, Options SIPP UK and Chrysalis Pensions; and one investment product: ABC Bonds.
They are linked to several pension providers, including: ForthPlus Pensions Ltd and they've recommended the Gaudi Limited SIPP.
The complexity of the situation is deepened by the role of Appointed Representatives (AR) within the Pi Financial Ltd 'network'. The FCA register exposes a significant list of such representatives associated with Pi Financial Ltd, including the following:
M&S Financial
HF Wealth Planning
MK Financial Planning Ltd
Alterno Wealth Ltd.
The client losses identified through the activities of these representatives raised questions about the overall governance and supervision within the firm, hence the regulatory actions against their principal firm, Pi.
An unsettling revelation came to light when the claims advisor working on behalf of MR M, told of the cold call Mr M received from an individual representing 'UK Life,' (an unregulated firm). Subsequent meetings with this person at Mr M's residence led Mr. M to Pi's advisor, with most of the regulated activity and client liaison seemingly conducted by UK Life.
This detail raises concerns about the thoroughness of the Pi governance process and whether Pi Financial's advisor was complicit with the illegal, non-regulated actions of 'UK Life'.
On February 17th, 2023, the Financial Conduct Authority (FCA) took decisive action against Pi Financial Limited. The FCA imposed restrictions and requirements on the firm, including the immediate cessation of pension transfers and opt-outs for new customers. The firm was also barred from providing advice on pension transfers and opt-outs to existing or pipeline customers without prior written consent from the FCA. This move was further reinforced by the prohibition of Pi Financial from taking on new Appointed Representatives.
Moreover, the FCA highlighted the necessity for Pi Financial to review its professional indemnity insurance coverage due to the mounting claims against the firm. This situation underscores the significance of insufficient Professional Indemnity Insurance within the financial advisory sector.
The far-reaching consequences of Pi Financial's failings are highlighted through real-life cases. Yet there are likely to be many more out there.
A number of our current clients also have active claims against Pi financial. Our clients' journeys were down a path that led to losses and financial distress. Advised by Future Wealth Management, the unfortunate course of action dictated switching our client's Associated British Foods Pension (DB Scheme) to the Forthplus SIPP. In the aftermath, our client's pension fund suffered significant depreciation in capital value, and the potential for pension growth was obliterated due to advice that now stands indicted as inappropriate.
The focal point in these cases revolves around advice dispensed in March 2018, by Harry Young of Future Wealth Management (Appointed Representative of Pi Financial Ltd).
At present, the available information about the full impact due to Pi Financial representatives remains 'in evolution'. As and when we receive more information, we will update this page.
In the meantime, as we diligently gather more details about the Pi Financial scandal and its implications, we invite you to take the following steps:
1. Check For Updates: Make sure to check back on this page for new information.
2. Reach Out to Us: If you have questions, concerns, or insights to contribute, don't hesitate to get in touch. Our team is here to address any queries you may have and provide you with the support you need. If anything sounds familiar it is best to contact us via the form below.
3. Stay Educated: While we await further information about the Pi Financial scandal, take the opportunity to educate yourself about financial advisory best practices, the role of Appointed Representatives, and your rights as an investor.
You can open a claim with us here at CP Financial Claims.
Please submit your details below for a free, no-obligation chat if you believe you have been affected by any of the firms mentioned above.
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.
