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Rakhi Vasavada
Rakhi Vasavada, Financial Advisor
Category: Finance
Satisfied Customers: 1813
Experience:  Attorney and Financial Expert. Have specialization in Financial Laws.Practice experience of over 13 years
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I was given poor advice by a financial consultant by

Customer Question

I was given poor advice by a financial consultant by transferring my pension to a SIPP. Both investments resulted in a total loss of £101,500 and the SIPP provider ( The Lifetime Company ) was entered into administration due to breach of FSA code. I have received no rental income from either of the investments for 5 years.
JA: Where are you? It matters because laws vary by location.
Customer: My SIPP currently stands at zero balance and the new provider ( Hartley Trust ) is still demanding administration fees of £1285 per year. Last year I put in writing that I wished to close the account and would accept all responsibility for future losses. When I was threatened with legal action I paid. I am now in the same position and simply cannot afford to pay and the prospect of having to pay an annual fee for the rest of my life when I have no pension income is causing be severe stress. I would like to understand my position in that I would have thought that if I requested closure then this should have been achievable.
JA: What steps have you taken so far?
Customer: I have done nothing as yet and have an ultimatum of payment by next week or I will incur legal and court fees.
JA: Anything else you want the lawyer to know before I connect you?
Customer: On the invoice there was a deduction of £104 which must have been paid in by someone but I have had no communication on this The only communication I ever get is an invoice. I would have though that for ( advanced ) payments of this size they could have at least informed me where this came from.
Submitted: 5 months ago.
Category: Finance
Expert:  JGM replied 5 months ago.

Thanks for your question. If the SIPP company went into administration can you tell me how you ended up with another company. Also why have you had no rent? Are there tenants in occupation? What is the nature of the properties that were bought? Did you have input into the purchases or did the defunct SIPP choose them. Generally can you explain the situation a little more and I will come back to you if not tonight, tomorrow.

Customer: replied 5 months ago.
Hartley Trust took over the SIPP from Lifetime. Hartley SAS were the original administrators for Lifetime and would seem to have set up under a revised name. My first investment was Store First in which I bought 4 storage pods for £60k with the promise that I would earn at least £5k a year. I received £4800 in 2013 but nothing since. They have gone into administration. The second was Akbuk Resort, a new hotel development in Turkey for £41,500. With a similar promise of annual rent ( not specified ) I received £2800 in 2103 but nothing since. All the directors of the holding company resigned last year and there is obviously a problem. Both these investments we’re unregulated which was not made aware of. There is a move to strike off the financial company which gave me the advice ( Roc Investments ). I understand that they made substantial commissions from many such as me. Thanks
Expert:  JGM replied 5 months ago.

Have you contacted the FCA?

Customer: replied 5 months ago.
Another company pursued my case with FCA on the basis that I was given poor advice. I received two payments totalling £50k of which I paid 30% to the recovery company. I should add that I sought advise from the regulated company which had previously managed my pension as to who else might take on my SIPP but was told that it was unlikely that any other company would be interested because they were unregulated.
Expert:  Nicola-mod replied 4 months ago.
It seems the professional has left this conversation. This happens occasionally, and it's usually because the professional thinks that someone else might be a better match for your question. I've been working hard to find a new professional to assist you with your question, but sometimes finding the right professional can take a little longer than expected.
I wonder whether you're OK with continuing to wait for an answer. If you are, please let me know and I will continue my search. If not, feel free to let me know and I will cancel this question for you.
Thank you!
Customer: replied 4 months ago.
please Nicola!
Expert:  Nicola-mod replied 4 months ago.
We will continue to look for a Professional to assist you.
Thank you for your patience,