You are here: Home - Retirement - Retirement planning - News -

Illegal pensions introducers ordered to pay £10.7m to SIPP clients

Written by: Emma Lunn
The High Court has ordered two unregulated introducers and three individuals to pay the money to clients who were induced to transfer their pensions into self-invested personal pensions (SIPPs).

The case was brought by the Financial Conduct Authority (FCA) and the order was made on Friday 7 August against Avacade Limited (in liquidation), Alexandra Associates (UK) Limited trading as Avacade Future Solutions (AA), Craig Lummis, Lee Lummis and Raymond Fox.

In a judgment dated 30 June 2020, the court found that Avacade’s and AA’s activities were unlawful as they had:

  • Engaged in the regulated activities of arranging and advising on investments
  • Made unapproved financial promotions through their websites, promotional material and in telephone calls to consumers
  • Made false or misleading statements

The court also found that the Lummises and Fox were knowingly involved in Avacade’s and AA’s breaches.

A further hearing took place on 31 July 2020 to determine the amounts the defendants should pay in for their roles in the unlawful activity.

It decided that Avacade should pay £10m, AA £715,000, Craig Lummis £2.5m, Lee Lummis £2.5m, and Raymond Fox £1.7m.

Additionally, AA, the Lummises and Fox have been banned from engaging in regulated activities in the UK without authorisation, making financial promotions and making false or misleading statements about regulated investments.

Mark Steward, the FCA’s executive director of enforcement and market oversight, said: “The FCA will make wrongdoers financially accountable to consumers whom, as the court recognises in this decision, ‘…include elderly and vulnerable citizens who have paid their due share of income tax, made sacrifices, and taken prudential decisions for their future retirement over the course of an honest working life”.

Subject to any appeals against the judgment, the FCA will take steps to recover the money from the defendants, so that it can return the cash to the investors.

Any Avacade or AA customers who believes they may have lost money and have not previously been contacted by the FCA about this matter, should contact the FCA to provide their details.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

How to get 5% interest without tying up your savings for years

You don't have to lock your money away to get an above-average return on your savings.
How to get 5% interest without tying up your savings for years

John Lewis Partnership Card to close in October

John Lewis has confirmed the current Partnership Card will stop working at the end of October, with existing c...
John Lewis Partnership Card to close in October

Warning as more people could pay tax on savings for the first time

The successive base rate hikes could push more Brits into paying tax on their savings interest for the first t...
Warning as more people could pay tax on savings for the first time

Ryanair jetting towards US flights for £10

Ryanair is on course to achieve its long-held ambition of offering transatlantic flights to the US – and the...

Investing in car parks: a good vehicle for income seekers?

As the search for income continues, many investors are turning to alternatives, with car parks becoming increa...

A quick guide to guarantor loans – in association with Guarantor Loan Comparison

Considering a guarantor loan or becoming a guarantor yourself? Read our essential guide...

Results round-up: Companies to watch this week

Mulberry and more will face the music this week.

Product launches of the week

Select Property Group, Schroders, Leeds Building Society and more have exciting news this week.

Money Tips of the Week