Investment Company says delay in payment

Chambers78 · 4 May 2017 at 11:36AM

Hi

I am hoping for some advice. My in-laws had invested money with Liberty Sipp and GCC Management Ltd. They had had an email advising their investment would be aid to them on 1st May. After not having money go into bank and some chasing this is the response they have got :

Please accept my sincere apologies, but as was confirmed to you by Liberty yesterday, there have unfortunately been unavoidable delays with returning funds to some clients' SIPP accounts.
GCC Management Ltd is currently meeting with the accountants to finalise, and file YE 31st March 2017 accounts.
As soon as these are finalised and filed GCC Management Ltd will be preparing repayment schedules for each client who has fallen due, and sending them to Liberty.
A further up date will be sent to Liberty at the end of this week.

Can they do this - just withhold money with no notice? In laws have no other income and are thinking of trying to get a loan but will struggle as bth retired? Is there anything that they can do?

Linton · 4 May 2017 at 12:22PM

Liberty SIPP appear to be a long established company authorised by the FCA. I cant find any information on GCC Management - there are several companies with similar names. Oddly if I look up "GCC Management" on the FCA register I get information on a different comeny : "Thames Asset Management Ltd". The only GCC Management registered at Companies House was previously called Gravity Child Care, based in Coventry which doesnt seem likely to be your GCC.

Do you have any information on GCC and what investments your in-laws hold with GCC/Liberty? With more information it may be possible to investigate further.

TadleyBaggie · 4 May 2017 at 12:30PM

The only GCC Management Ltd company I can find appears to be care provider based in Coventry. Their website appears to have only a homepage and contact page.

dunstonh · 4 May 2017 at 12:37PM

Based on very limited information and the mention of the particular names, this looks like dodgy/unregulated investments were used which went to fail or are illiquid.

If that is the case, yes they can withhold the money. Also, if it is the case, they should consider making a complaint to the firm that put them in those investments in the first place as they would be wholly unsuitable for inexperienced investors or those with insufficient other savings/investments to rely on. Maybe you could find out more about the investments in the SIPP and let us know.

Chambers78 · 4 May 2017 at 12:42PM

Hi

Yes looking at the statements the investment does say Gravity Child Care investment based at the Quadrant in Coventry. In total across 2 accounts the investment is £80K. Below is a copy of the email they sent to in-laws in Jan confirming when payments would be made (I have taken out my in-laws names). Then nothing until they chased up this week and received the email above. Not sure what other info is needed, sorry.

From: NF [EMAIL="m@gccmanagement.co.uk"]@gccmanagement.co.uk[/EMAIL]]
Sent: 25 January 2017 14:36
To: K G [EMAIL="K@libertypensions.com"]@libertypensions.com[/EMAIL]>
Subject: RE:

Hi K

Apologies for the delay with these, but please find attached statements for Mr and Mrs XXXX.

Funds will be returned to the SIPP accounts on the end date, ie 1st May 2017.

Regards

N

woolly_wombat · 4 May 2017 at 1:18PM

https://beta.companieshouse.gov.uk/company/07460611

"GCC MANAGEMENT LTD

Company number 07460611

Registered office address
5 The Quadrant, Coventry, CV1 2EL

Company status
Active
Company type
Private limited Company
Incorporated on
6 December 2010

! Accounts overdue

Next accounts made up to 31 March 2016
due by 31 December 2016

Last accounts made up to 31 March 2015"

Linton · 4 May 2017 at 1:33PM

How does the "attached statement" refer to the GCC investments? Specifically what is the name they use for them. Need less to say "Gravity Child Care" do not appear to be authorised on the FCA register. Is the £80K the full value of the SIPP or are there other investments?

It looks like the in-laws have been persuaded to put what is possibly all their retirement money into a loan to Gravity Child Care. Perhaps Gravity Child Care dont have the spare cash on hand to pay it back. They can hardly sell a children's home. This link may be relevent.

I agree with Dunstonh - this is high risk investing only suitable for experienced investors and then only for a small % of their money. To sell it to relatively poor and inexperienced pensioners as a suitable respository for all their life savings is criminal and should be reported. I am not sure to who, perhaps the FCA.

Where did the money come from? Were they persuaded to transfer their pensions from elsewhere? If so by who?

Linton · 4 May 2017 at 1:41PM

And another link from the Guardian

xylophone · 4 May 2017 at 2:00PM

http://forums.moneysavingexpert.com/showthread.php?t=4216979

The question of this company came up before....

Chambers78 · 4 May 2017 at 2:04PM

Please see below an up-to-date statement of your Gravity Child Care investment.
Initial investment £22656, received 1st May 2012.
Year 1 interest @ 18% £4078.08
Year 2 interest @ 18% £4078.08
Year 3 interest @ 18% £4078.08
Year 4 interest @ 18% £4078.08
Total interest accrued to 1st May 2016 = £16312.32
Interest accrued 1st May 2016 – 25th January 2017, 8 months @ 18%/annum = £2718.72
And 25 days @ 18%/annum = £279.25
Total interest accrued to 25th January 2017 = £19310.29
Total value at 25th January 2017 = £41966.29
Yours sincerely
Nicola Fairweather
This is the details of the one statement and this is all it says - the other is exactly the same just different amount and I believe it was all arranged through Liberty SIPP

woolly_wombat · 4 May 2017 at 3:32PM

Chambers78 wrote: »

Please accept my sincere apologies, but as was confirmed to you by Liberty yesterday, there have unfortunately been unavoidable delays with returning funds to some clients' SIPP accounts.
GCC Management Ltd is currently meeting with the accountants to finalise, and file YE 31st March 2017 accounts.

Don't hold your breath. They haven't filed YE 31st March 2016 accounts yet.

Investment Company says delay in payment

Comments

Categories

Get our FREE Weekly email full of deals & guides - and it’s spam-free