"People rely on good-quality pensions advice to secure a comfortable retirement. Mr Adams and Mr Hodgson fell far short of this basic expectation, earning significant fees for themselves in the process."
- Therese Chambers, executive director of enforcement and market oversight at the FCA
The FCA has banned Steven Hodgson and Paul Adams of Vintage Investment Services from advising any customers on pension transfers and opt outs. They are also banned from holding any senior management function in a regulated firm.
The regulator says Hodgson and Adams poorly advised people to transfer out of defined benefit pension schemes, including the British Steel Pension Scheme (BSPS).
Between January 2016 and December 2017, Vintage advised 97% of its defined benefit pension clients to transfer out of their pension, and 98.8% of those customers followed the firm’s advice. 165 people transferred out, including 93 members of the BSPS. The average completed transfer value was over £420,000.
The FCA found that Adams and Hodgson were responsible for this poor advice – two thirds of which did not meet the required standards. 132 customers continued to pay Vintage for ongoing advice after being wrongly advised to transfer.
In addition, Hodgson and Adams will pay £32,700 and £53,200 respectively to the Financial Services Compensation Scheme (FSCS) to contribute towards redress owed to Vintage customers.
Therese Chambers, joint executive director of enforcement and market oversight at the FCA, said: "People rely on good-quality pensions advice to secure a comfortable retirement. Mr Adams and Mr Hodgson fell far short of this basic expectation, earning significant fees for themselves in the process. Their fines will go to the FSCS to offset the cost of their failings."
