BlackStar Wealth Management – Has your pension lost money?

Has your pension lost money after being advised to transfer by Blackstar Wealth Management?

Who were BlackStar Wealth Management Limited?

Blackstar Wealth Management Limited was a FCA regulated company prior to closure. It was a firm of independent financial advisors who advised the majority of their customers to transfer their pensions.

The advisors typically would advise clients to transfer their personal or occupational pension into a Self-Invested Persona Pension scheme, otherwise known as a SIPP.

BlackStar Wealth Management also authorised promotions for certain investments. These investments were:

• ABC Bonds
• Colonial Capital
• Dolphin Capital
• Harlequin Properties
• Storage Pods

What went wrong?

Independent financial advisors of BlackStar Wealth Management convinced their clients to transfer out of their defined benefit or pension schemes into a SIPP to allow them to invest in unregulated, risky investments. This unsuitable financial advice resulted in SIPP investors losing all or nearly all of their pension savings.

BlackStar Wealth Management failed to complete the proper due diligence when advising a client to transfer. They failed to advise clients that they may lose some core benefits which were entitled to a client at retirement and, the fees and charges associated with the transfer.

Further to this, it did not properly advise clients that by transferring into a SIPP they were exposing their pension funds to be involved with high risk, unregulated investments.

Case Study

Mr X was contacted by a representative of Blackstar Wealth Management and was encouraged to transfer his pension to a SIPP to ensure a fast growth on his pension. Blackstar Wealth Management held themselves out to have the required knowledge and experience to be able to identify and select investments that accorded to Mr X’s attitude to risk, which was low.

When contacted, Mr X believed that the proposed pension transfer would be a great way to increase his pension funds as he ventured into retirement. What Blackstar Wealth Management failed to advise Mr X was that the advice to transfer was unsuitable for Mr X and the underlying investments within the SIPP were not in like with Mr X’s objectives of growth.

It was wholly inappropriate for Blackstar to make the recommendations that they did. Blackstar Wealth Management provided Mr X with a misrepresentation that his pension would perform better if the advice to transfer was acted upon.

The risks associated regarding investing a large percentage of his pension into volatile, high risk investments, were not explained to Mr X. Had this advice been provided, Mr X would not have proceeded with the investment, nor the transfer.

As a consequence of Blackstar Wealth Management’s negligent advice to transfer and invest, Mr X had suffered a substantial financial loss.

After an initial consultation with Mr X, Oakwood Solicitors obtained and reviewed Mr X’s client files and prepared a series of legal arguments which were present to the Financial Services Compensation Scheme (“FSCS”).

The FSCS adjudicator upheld Mr X’s claim and awarded full compensation of his loss which was in excess of £70,000.

Do I qualify for a claim against BlackStar Wealth Management?

It is your IFA’s responsibility to inform you on suitable products depending on your personal circumstances.

If any of the below apply to you, you may be eligible for a claim through the Financial Services Compensation Scheme (“FSCS”).

• If you were convinced and advised to transfer your pension into a SIPP and your pension has lost money after this transfer
• If you invested in a recommended investment by the firm and it lost money
• If your IFA did not assess your financial situation or attitude towards risk prior to recommending the investment
• If BlackStar did not adequately advise you that you could lose some core benefits if you transferred

The experts in Financial Litigation claims

Oakwood Solicitors Ltd specialises in Financial Mis-selling claims. We have a Financial Litigation team dedicated to assisting clients who have lost money as a consequence of negligent advice in relation to a financial product, such as a pension or an investment.

Further reading

BlackStar Wealth Management claims – Oakwood Solicitors

Mis-sold Pensions – Oakwood Solicitors

Financial Conduct Authority (FCA)

WHAT TO DO NEXT

If you believe you may be in a similar position you should contact Oakwood Solicitors on 0113 200 9720, and provide us with some information regarding your pension transfer and we will be able to advise if you have a viable claim.