How Foreman Financial Services Ltd fell foul of the FCA
Foreman Financial Services Ltd (which was also trading as Grainger Co Financial Services) lost its FCA permissions back in October 2017, following the repeated refusal to reward compensation to a client for a mis-sold pension recommended by their advisers. The client was entitled to this compensation after they made a complaint and after a decision was reached against the company by the Financial Ombudsman Service (FOS).
Mr. C accepted an award against Foreman Financial Services Ltd following their recommendation that he invest in the unregulated Harlequin Property resort, which resulted in him losing almost his entire pension fund. Investigations conducted by the FOS found that the advice given by Foreman Financial Services Ltd was not suitable. As a result, they ordered that the company pay compensation to put Mr C back in the position he would have been in if not for the advice.
Mr. C was neither a sophisticated investor nor had the affordability to cover such an enormous loss, both of which are supposed to be pre-requisites of a Self-Invested Personal Pension (SIPP) when it comes to determining an individual’s suitability.
Do you believe that you may have been mis-sold your pension or investment? Read our guide to find out more about what counts as financial mis-selling, and contact our team to determine whether or not you have a claim.
Foreman Financial Services Ltd ignored repeated requests from the FOS to pay redress to Mr. C, believing that they had done nothing wrong and that the advice they gave was suitable for Mr. C’s circumstances. Owner of the company, Stephen Foreman, went on to cite Mr. C’s claims management company as the instigators of the complaint, insisting that the complaint was fabricated and that the client had no real grounds.
Following Mr. C’s acceptance of the FOS award on 14th September 2016, the FCA said –
“Although Foreman Financial Services disputed the decision it did not seek a judicial review meaning it was binding.
“Foreman Financial Services has failed to comply with the FOS Award, despite repeated requests by the FOS and the authority that it do so.”
There were two other FOS upholds against Foreman Financial Services Ltd, one being that they recommended Greyfriars Asset Management’s ‘Portfolio Six fund’ (a fund which led to Greyfriars agreeing to a permissions restriction with the FCA in 2016).
Are you eligible for a mis-sold SIPP claim against Foreman Financial Services Ltd?
Although Foreman Financial Services Limited has now ceased trading and is unable to offer further independent financial advice, our claims management team are urging former clients of theirs to get in touch (particularly those who entered into a SIPP on the advice of the company) to find out if they too have a claim.
Contact us today for a no-obligation consultation, either by filling in our online form to the right or by calling us on 0161 968 0768. Our claims specialists will assess your own experience with Foreman Financial Services Ltd and determine whether or not you can claim.