An advice firm with ties to collapsed discretionary fund manager Greyfriars Asset Management has gone into liquidation.
Consumer Wealth based in Gateshead went into voluntary liquidation on 14 January with RSM administering the wind up.
It has 13 Financial Ombudsman Service complaints against it dating from 1 April 2018 to the end of December 2018.
One of the FOS complaints published on the ombudsman’s website shows a client called Mr F complained about the advice he received from Consumer Wealth to switch his personal pensions to a Sipp.
A subsequent investment in a Greyfriars portfolio six fund became illiquid.
In July 2015 Consumer Wealth advised Mr F to move his two personal pension plans valued at £58,000 to a Sipp.
It recommended he invest 49 per cent of the Sipp into an equity fund, 49 per cent into the Greyfriars Portfolio 6 fund and 2 per cent was held in cash.
An adjudicator looked into the complaint and said it should be upheld as it was not necessary to switch Mr F’s pensions while the recommended investments were above his risk appetite.
Consumer Wealth disagreed and pointed out the recommended investments were suitable for Mr F’s level of risk.
Ombudsman Keith Taylor then looked into the complaint and sides with the adjudicator as he says there was little benefit from the consolidation of Mr F’s pensions into a Sipp.
He says Consumer Wealth should pay Mr F £250 for the needless pensions switch and compensate for any loss based on the calculation method explained in the ruling.