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British Steel IFA Active Wealth goes into liquidation

Magnifying-Glass-And-Text-Kindle-Contract-700x450.jpgActive Wealth, one of nine firms that has stopped giving pension transfer advice in light of the British Steel pension saga, has gone into liquidation.

An insolvency notice published by The Gazette on 12 February shows liquidator Crossfields was appointed on 5 February by the creditors.

The Midlands-based firm has attracted attention for its role in advising members to transfer out of their final salary schemes at British Steel.

Active Wealth managing director Darren Reynolds wrote two letters to work and pensions committee chairman and MP Frank Field about its involvement in the British Steel saga.

No one from Crossfields was available for comment at the time of publication.

Today the FCA published a letter it has written to firms reminding them of its requirements related to pension transfers and reiterating its concern about applying a “commoditised approach” to this work.

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Comments

There are 18 comments at the moment, we would love to hear your opinion too.

  1. Oh well, stand by for FSCS payments I dare say

  2. Get your wallets out people…

  3. Nicholas Pleasure 14th February 2018 at 3:52 pm

    Where shall I send my cheque? I’m making the rash assumption that I’ll be required to pay sooner or later.

  4. oh dear does this smell like complaints coming lets get out of here and leave the FSCS to sort and the IFA community that does not do DB Tranfers

  5. Well I hope the MPs are pleased with themselves. The problem is that this helps no one, jobs have been lost, clients have lost their adviser and the rest of us pay for it through the FSCS levy. Well done just the outcome everyone wanted !!!

  6. What’s the betting that the unauthorised introducer will now link up with a No Win – No Fee solicitor and contact the clients that were referred on to Active Wealth? It makes you sick!

  7. If you can’t stand the heat, get out of the kitchen! How true.

  8. seems one guy only at this firm employed and giving the advice

  9. For instance, Reynolds explains Active Wealth’s ongoing adviser charges are calculated on an hourly basis agreed with the client.

    He says: “In most cases ongoing advisory service would amount to five to six hours of work, based on hourly rate of £100. This would result in annual charge of £500 to £600 per annum.

    “While the fees would not have been calculated as a percentage of the pension fund, if we assume an average pension pot of £300,000, then a £600 ongoing adviser charge would equate to 0.2 per cent of the initial pension pot, prior to the addition of any investment growth.”

    Reynolds also says of the roughly 300 British Steel Pension Scheme clients Active Wealth advised, 64 transferred out to an alternative pension arrangement.
    CLEARLY DID NOT CHARGE ENOUGH

    • Why do you believe anything he says? Even admin assistants are charged out at more than £100 per hour.

      He was pulling all your legs until he found some 2 bit IP who was happy to deal with his mess.

  10. That’ll be the end of their PII cover then.

  11. His hourly rate does sound rather low.

  12. I do not think folks understand what their hourly rate actually is….. Would we love to get £100 per hour!

  13. The problem we have in our ‘profession’ is that some advisers do what the client says and not what is best for the client. This company has let the profession down and no doubt there will be many more like them. Yet again left to the good advisers to pick up the tab. Higher insurance costs and fscs fees. OUTRAGEOUS.

  14. He’ll be back next week in a different guise.

    Ho hum!

  15. fca had him on radar in 2o16

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