The Avalon Investment Services Limited, known as Avalon SIPP, a pension operator and administrator, once appeared as a beacon of financial security for pension holders. However, its journey took an unexpected turn, leading to a sequence of events that left many in financial distress.
In this article, we will guide you through the timeline of Avalon's tumultuous history, the mis-sold claims surrounding it, and how CP Financial Claims can assist you in seeking compensation if you were affected. If you recognise any of the names or situations described here and suspect you may have been affected, please don't hesitate to contact us.
Avalon Investment Services Ltd, or Avalon SIPP, underwent significant changes in a short span of time. In February 2016, the company was placed into Special Administration, and by August 2018, it was dissolved. This dissolution marked the end of an era for Avalon, but it was not the end of the story.
In March 2016, Hornbuckle's parent company, the Embark Group, acquired Avalon for an undisclosed fee. Despite this acquisition, the Embark Group did not assume the liabilities from a prior court case against Avalon SIPP. Instead, they established a new firm, Embark Investment Services, to manage Avalon's £300 million in assets and 50,000 clients, including 1,200 with Sipps.
The complexities of this acquisition have led to concerns among clients who had placed their trust in Avalon. It is crucial to understand the implications of these changes, especially if you were a client of Avalon during this transition period.
However, this transition did not come without its share of complications and unanswered questions. It's essential to understand the implications of these changes for Avalon's clients.
Another key point in Avalon's turbulent journey occurred on January 14th, 2020, when the Financial Services Compensation Scheme (FSCS) declared Avalon in default. This declaration sent shockwaves through the pension industry and raised concerns about the financial well-being of Avalon's clients.
Avalon played a significant role in advising clients on pension transfers. Some clients sought advice from authorised independent financial advisers (IFs), while others were referred by unauthorised firms. Unfortunately, the outcomes of these pension transfers were often far from desirable, with clients finding their pensions invested in high-risk, non-standard investments, many of which have become illiquid.
This meant that they couldn’t be sold or traded, so it left the client with no options.
After investigations into Avalon by the FSCS had concluded in December 2019, the FSCS started processing claims related to Avalon that revolve around the firm's due diligence. You may be eligible for compensation if you can demonstrate that Avalon failed in its due diligence responsibilities.
As of February 2020, the FSCS had already received 213 complaints against Avalon, resulting in £264,000 in compensation payouts to clients. If you suspect that your Avalon SIPP may have been mis-sold, we can assist you in pursuing the compensation you deserve.
Claims against Avalon hinge on the firm's due diligence practices, particularly in relation to non-standard investments like Dolphin Investments, which Avalon signed off on, which they held within their customers' pension funds. Due diligence involves checks to ensure that these investments are appropriate for a SIPP and the identification of potential issues with them. If issues were identified, it raises questions about whether Avalon adequately informed the customer.
Currently, civil claims cases against SIPP operators are ongoing in the High Court regarding their due diligence obligations. The outcomes of these cases will significantly impact the ability to make claims against operators like Avalon Investment Services Ltd.
Making a claim in the wake of the Avalon SIPP controversy is not just a matter of seeking financial compensation; it is an essential step toward achieving justice and holding responsible parties accountable for the financial losses and hardships you may have endured. Here's why making a claim is crucial:
Seeking Financial Redress: It's about ensuring that your hard-earned money is rightfully restored to you.
Holding Responsible Parties Accountable: Those who were involved will be held responsible for the harm they have caused to investors.
Contributing to Industry Accountability: Your actions can help expose any systemic issues or shortcomings in due diligence practices and regulations, ultimately leading to improvements that benefit all investors, and could contribute to a more transparent and trustworthy financial industry.
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