A small pension scheme was advised to invest nearly half its assets into Keydata life settlement vehicle Lifemark.
The Financial Mail on Sunday reports that a pension scheme for employees of Yorkshire-based Micro Metalsmiths was advised to invest £2m of its £5.25m assets in Lifemark by a local IFA, Lampott.
The firm employees 120 staff and 50 retired workers are currently drawing from the scheme. It has already had to pump £160,000 into the scheme to keep it afloat, according to the Financial Mail report.
The report says Micro Metalsmiths is suing the IFA in the hope its PI insurer pays out on the losses incurred.
In a statement given to the Financial Mail, Lampott says: “As the trustees of the Micro Metalsmiths Retirement Benefit Scheme have lodged a formal complaint, until our investigations are concluded and reported to the trustees it is not appropriate for us to make particular comment in this case.”