The Insolvency Service has issued a new warning in respect of pension misuse.
The new warning comes following 24 applications to wind-up companies by the Insolvency Service since 2015; companies that were responsible for persuading consumers to transfer their pensions into unregulated schemes and scams resulting in combined losses of a staggering £202 Million.
Fast Pensions
Fast Pensions was wound-up in 2018 along with five other connected companies including FP Scheme Trustees.[1]
It is reported that between 2012 and 2015, 520 people transferred their pension into 15 schemes where FP Scheme Trustees acted as the ‘sponsoring employer’.
An estimated £21 Million was transferred from pensions and savings into these schemes.
It is believed £4 Million was used solely to fund commissions and that the majority of invested funds were loaned to Fast Pensions and its associated companies.
What were the warning signs for the victims of this scam?
- They were provided with various incentives.
- They were cold-called.
- They were offered free pension reviews.
The Official Receiver remains the interim trustee of the scheme however an application to appoint an Independent Trustee has been made to The Pensions Regulator. We understand that Fast Pensions and its connected companies have failed to provide full disclosure to aid the ongoing investigations.
[1] Fast Pensions connected companies
- Fast Pensions Ltd
- FP Scheme Trustees Ltd
- Blu Debt Management Ltd
- Blu Financial Services Ltd
