This is a case study of Mr W. where Money and Me Claims Ltd. were the appointed representatives in pursuing the losses he had suffered as a result of the unsuitable financial advice he received.
THE SITUATION
Mr W. was a member of the Royal Mail Pension Scheme (RMPS) from August 1996 to July 2011, nearly 15 years. Acting on what has now been proven to be unsuitable advice, he transferred his preserved RMPS into a Self-Invested Personal Pension (SIPP) in February 2014. The cash equivalent transfer value of Mr W.’s RMPS was £127,689.49; however, only £121,866.29 was transferred, indicating a significant reduction due to various fees.
OUR APPROACH
After conducting an in-depth investigation, MMC believed that Magna Wealth Management (MWM) wrongly advised Mr W. to transfer his RMPS. We established that MWM had gone out of business in 2019 and, therefore, submitted a claim to the Financial Services Compensation Scheme (FSCS).
Despite being transferred out of the Royal Mail Pension Scheme (RMPS) for just over 10 years, it was established that had Mr W. remained in the RMPS, the equivalent hypothetical value of that pension would have been £496,703.82, resulting in an actual loss of £374,837.53.
THE OUTCOME
In November 2021, the Financial Services Compensation Scheme (FSCS) awarded Mr W. £50,000.00 in compensation for his losses. This amount was the maximum payment he was entitled to receive under the FSCS rules.
Mr W. was very pleased with the outcome of his claim and was astonished by the extent of his financial loss from transferring his pension.