The pensions regulator has stepped in and appointed Dalriada Trustees Limited as trustee of London Quantum Retirement Benefit Scheme.
The Pensions Ombudsman became concerned about whether London Quantum was being properly managed and has used its powers to intervene appointed Dalriada as the new trustees of the fund.
If it is found that the fund should be closed, Dalriada will close the fund and distribute any monies, after costs, to the investors. Unfortunately if this happens it’s likely that the investors will not receive back the amount that they paid in, and only receive a small percentage of their original investment.
This announcement comes as pension mis-selling comes under the spotlight yet again. Investigations have discovered that thousands of pensioners have been sold the wrong investment plan and therefore lost large amounts of their money.
When you reach retirement you have to convert the capital in your personal pension pot into a regular pension if you want to receive an income from it. You can take up to 25% of your pension pot as a tax-free lump sum and, typically, most people convert the rest into an annuity through an insurance company. This offers a regular guaranteed income for life - a comforting prospect, or so you'd think.
But, as many consumers are beginning to discover, the complex nature of annuities (which can involve overwhelming piles of paperwork) and the poor advice available mean these products are failing - sometimes quite spectacularly - to deliver as expected.
If you bought a pension annuity we strongly recommend you read the statements below. If any ring true, then there's a very good chance you've been mis-sold your product:
• You weren’t given any other options
• You weren’t made aware of any hidden charges
• You were in poor health but receiving a standard rate of pension income
• You were sold an annuity that will stop paying out when you die
• You wanted your pension payments to keep up with inflation but weren’t given the option.
If any of these ring true it’s important that you get legal advice straight away as you may have to fight to get back what is rightfully yours.
If you have been affected by pension mis-selling, or have invested in London Quantum, then please contact Slater and Gordon and we can advise on seeking compensation. Call our specialist litigation solicitors on freephone 0800 223 0539 or contact us online and we will call you.