Stockport-based adviser fails over pensions claim

Stockport-based adviser Smith Holdings Ltd, trading as Life Time Independent, has been declared in default by the Financial Services Compensation Scheme (FSCS).

The Cheshire firm (FRN: 441726) entered liquidation in 2012 and has not been authorised by the FCA since 2013.

The FSCS has received four claims against the firm, all of which relate to pensions advice. Three of the claims were rejected and one was upheld, triggering the default process.

The declaration of default by the FSCS opens the door to ex-clients with valid claims to seek compensation of up to £85,000 per claim, the FSCS maximum.

Before entering liquidation, the advice firm had four employees.

Smith Holdings was founded in October 2005 by Patrick and Rosalind Smith and was dissolved in March 2015 after a two year winding up process under a compulsory liquidation order.

The compulsory liquidation order was made following a petition by Friends Life, an investment company acquired by Aviva in April 2015.

Smith Holdings is the latest in a string of advice firms to enter default following successful complaints over unsuitable pensions advice.

In December the FSCS declared six advice and pension firms in default, with an additional two firms under investigation.

The FSCS said earlier this month that it planned to increase its workforce by about 25% by 2025 to cope with a surge in complex cases. The compensation body’s headcount will rise from 254 to 321 with the recruitment of 67 new staff.

The FSCS said earlier this month that a rise in complex cases meant it needed more in-house experts to deal with cases that will include SIPPs, investments and pension transfers. Cases in these areas have grown considerably in the past few years.