1 Stop financial services – The Mis-Selling and Misconduct
1 stop financial services is a firm based in Dyfed and they have since ended trading due to many allegations of financial misconduct and mis-selling.
These allegations were so rampant to a point where directors Timothy Hughes and Andrew Rees were fined thousands of pounds, and the company was de-registered by the FCA back in 2004. The two make from restating the business.
1 Stop became ill-reputed for mis-selling SIPPs, following a period between October 2010 to November 2012, where it advised over 2000 people, which lead to SIPP transfers and investments that was over £122 million.
“The two persons were not checked regularly for suitability, the investments were often not regulated, and the company failed to declare a conflict of interest to clients, taking a fee from the introducer firm too,” According to a damning article from Professional Advisor.
The Advices 1 Stop Financial Service Gave People
1 Stop financial Service offered advice on many high-risk investments. However, we often tend to see the following advice pop-up with a majority of our clients more often than not:
The Carbon Credits Investment ‘Scam’
Majority of people who invested in carbon credit with the hopes of its value increasing, mainly in the form of SIPP or any other pension investment have ended up being disappointed with IFAs and companies that got itself wrapped up in Carbon Credits going bust or into liquidation.
Honestly, the scheme was always ambitious, but today people refer to the investment as the Carbon Credit Scam.
Even though we cannot comment on the idea of a ‘Scam’ – all-round criminal behaviour indication does get many clients contacting us about a potential mis-selling of their SIPP in carbon credits because of unsuitability, negligence, and poorly assessed risk factors.
Harlequin Properties Scam
This form of investment first got to investors through calls from unregulated marketing companies. Other came to know about them through property investment seminars. Companies that would can made it seem like it has happened “out-of-the-blue”, and would urge people to have a pension review.
In other cases, high-pressure techniques were used, like down-playing a person’s current pension arrangement and inflating the safety and security of the investment. However, in itself, it is a high-risk and unregulated form of investment, and not under the jurisdiction of the FCA.
This meant that in case of anything that went wrong with the investment, neither the FSCS nor the financial ombudsman service would help. This is the way with unregulated investment, which means that they are simply not covered.
However, with polished brochures showing eye-catching scenery and designs, adding to celebrity endorsements and the attractive return, Harlequin properties became an easy sale for motivated salesperson. Many found themselves inclined to transfer their pension into a SIPP with the aim of making their Harlequin properties investment.