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The landscape of financial planning is complex, and finding a trusted Independent Financial Advisor (IFA) is critical for your financial stability. The recent failures of CFP Management, an advisor embroiled in a saga involving mis-sold claims, highlights the potential hazards in this field. If CFP Management rings a bell and you suspect you might be affected, this article will equip you with essential information and how CP Financial Claims can assist you.
A good starting point it when CFP Management entered liquidation on September 2, 2021. The Financial Services Compensation Scheme (FSCS) is currently investigating the myriad claims made against the company. This situation should serve as a wake-up call if you've had dealings with the firm or are generally wary of your financial security.
CFP Management Limited opened its doors on March 28, 2011. Over the years, it gained some prominence for advising on different pension funds, notably the British Steel and other Defined Benefit Pension transfers. However, the trouble started when the extent of its questionable advice on pension transfers came to light.
Between April 21, 2015, and October 31, 2017, CFP Management advised on an incredible 1,470 Defined Benefit (DB) transfer cases, with a further 30 related to the British Steel Pension Scheme, worth £392 million.
What is staggering is that in 99% of these cases, the company advised its clients to proceed with pension transfers according to the FCA. The Financial Conduct Authority (FCA) examined this advice and found that 90% of it did not comply with its regulations.
This led the FCA to impose a cumulative fine of £1.3 million (£681,536 and £632,594) on the former directors of CFP Management. Despite each boasting 30 years of experience in the pension industry, they were found to have operated a "flawed pension advice process" and is now banned from performing any further regulated activities.
The former directors earned substantial sums from CFP Management—£473,289 and £439,302, respectively—through salaries, dividends, and pension contributions. Although the FCA initially contemplated higher fines, these were later reduced based on evidence demonstrating that the larger penalties would cause the individuals financial hardship.
It's worth noting that CFP Management is not an isolated case. The FCA has a history of taking action against firms for incorrect pension transfers. Just last month, Paul Steel of Estate Matters Financial received a fine of £850,000 for similar infractions.
Some other details worth mentioning include asset restrictions imposed on CFP Management since December 2020, meaning the company can't use its assets without prior FCA consent. Also, the firm operated under various trading names, such as CFPML and CFP Management Limited.
The company even had an appointed representative, Selectapension Bureau Services Limited, from June 2014 to October 2018.
David Brian Price, one of the directors, had several other affiliations with companies like CP Management Limited and Campbell Fisk & Partners Limited. Moreover, before the company came under scrutiny, its assets like client contracts and goodwill were sold to Core Wealth Management Limited for £176,835.04, including subsequent monthly payments.
The former directors appealed the FCA's decisions to the Upper Tribunal, where they intend to make their case. Until then, the FCA’s findings are provisional.
If this information makes you suspect that you've been affected by the CFP Management scandal, there's no need to navigate this complicated process alone. At CP Financial Claims, we specialise in aiding those who have been affected by financial misadventures.
Whether you’re a member of the British Steel Pension Scheme or involved in one of the many DB transfer cases, it's imperative to take action immediately. Further information on this subject is still unfolding, but if you recognise any of the names or entities connected to this case, don’t hesitate to contact us.
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.
