Bank House Investment Management has been banned from carrying out any regulated activity after the Financial Conduct Authority (FCA) became concerned that it was transferring customer pensions into high risk, unregulated investments.
The problem with Bank House Investment Management
This total ban comes after initial concerns about the way the company was conducting its business began to surface. In July 2015, the FCA carried out an unannounced visit at Bank House Investment Management’s premises In Cheltenham.
During this visit they found evidence that the firm had been switching customer pensions into self-invested personal pensions (Sipps). They also found the majority of the underlying investments were in high risk, unregulated investments.
As a result of the FCA’s concerns about the suitability of the pension advice being given by the firm and the risks this posed to investors, the FCA imposed restrictions on the firm not to carry out any pension transfers in to Sipps.
Breaching the agreement
Despite the terms of the agreement, the FCA became aware in August 2016 that Bank House Investment Management was still continuing to conduct pension transfers.
Between October 2015 and October 2016, Bank House Investment Management advised 78 customers whose pensions were transferred into Sipps. In total over this period pensions with a value of £2.65 million were moved into risky, unregulated investments that were inappropriate to their customer’s need and risk profiles.
Further FCA investigations also revealed that third party introducers have played a big role in generating new customers.
Of the 225 leads supplied, 180 were accepted, leading to 142 customers receiving pension advice.
As of September 2016 Bank House Investment Management is no longer in operation. The FCA has placed a total ban on it giving pensions advice. It has also been ordered to cease all trading.
If you invested through Bank House Investment Management you might be eligible for compensation. Get in touch with our expert team today for a free consultation.