True Potential redress offer

topsy73

I also have received a redress offer….1/30th of what was lost in the 42 months I was with them. I transferred funds over upon the advice received from our long standing IFA six months after the passing of my late husband. It was COVID, we were in lockdown, he was retiring….I was worried if I left the existing funds in my bank I would only be covered for the 80k covered by the FCA….anyway after 42 months (approx) of logging into the app daily and seeing it pretty much always in deficit, I chose to close the account as losing 30k is not an easy amount to swallow as a widow…it still makes me smart when I think of the amount lost so to receive an offer (unexpected) is nice however barely touches the loss. Upon reading these comments though (I had been searching all weekend for peoples experiences and responses) it appears I should accept and be happy with the amount sent over….

dunstonh

https://forums.moneysavingexpert.com/discussion/comment/81970595#Comment_81970595

Despite all the TP issues, nothing they offer is non-mainstream and their returns are in the ballpark of expectation for the asset classes.

There has been no 42 months (or thereabouts) period of loss in any asset class. Only gilts and index linked gilts come close to that but that was from Nov 2021 to October 2023. Equities have been positive in every year apart from 2022.

it still makes me smart when I think of the amount lost so to receive an offer (unexpected) is nice however barely touches the loss.

The redress is not there to cover investment losses. It is effectively to cover the difference in loss to what you would have had if you had not transferred. (as much as it is possible to calculate such things)

On the plus side, if you bought an annuity with the pension, you would have seen a massive increase in the annuity rate and would not actually be any worse off. if you cashed it in and paid tax on it, then that was unncessary and could have been avoided.

topsy73

https://forums.moneysavingexpert.com/discussion/comment/81970763#Comment_81970763

Thanks Dunston - unfortunately it was not in pensions - but investment - one being a stocks linked one which considering my profile was risk averse was not great

as I said in my post I cut my losses and accepted the loss so having this offer out of the blue should be and will be appreciated!

Ibrahim5

First we get told that FAs are villains and IFAs are gods. The IFAs retire and are happy to throw their customers under a bus to line their own pockets and pass their customers to FAs. Then we get told that the offering from the FA is basically the same as the IFA so there's no problem. Financial advisers whether independent or not are all the same. It's about lining their own pockets.

diveunderthebonnet

https://forums.moneysavingexpert.com/discussion/comment/81972993#Comment_81972993

I dont think you can make that statement with out concrete proof ,everybody working for a living is entitled to get some kind of remuneration , do you work for free? And before you accuse me of being employed by the finance industry i am retired and was an engineer.

Ibrahim5

Yes I do remember reading an FCA report where they seemed to have found an IFA in Scotland that was charging reasonable rates so maybe I am generalising a bit too much. There could be more.

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/81972013#Comment_81972013

Pensions are normally invested, so the comments about you making a surprising big loss still hold. A stock based investment should have grown a lot in recent years.

Completely separate to the subject of this thread - if a financial advisor ( IFA or FA or TP ) invests your money in an inappropiate product for your risk profile/situation, then you can seek financial redress. However without more detail of the underperforming investment (s) involved it is difficult to be clear what has happened.

UnitedAreBack

My pension was also "moved" to True Potential 5 years ago for my Financial Advisor's profit and have just received a letter with TP's offer of redress under section 166. They have advised me I will also receive an interest payment (as I transferred back out of TP a year ago) This interest payment is taxable by 20% and will be paid to HMRC direct by TP (which I understand) What I am not sure about is if the redress lump sum offer is taxable?

I have contacted HMRC twice and once they said it was (at my current Income Tax rate) and the other time they said it wasn't taxable (as it was compensation)

Can anyone please help me ?

dunstonh

My pension was also "moved" to True Potential 5 years ago for my Financial Advisor's profit and have just received a letter with TP's offer of redress under section 166. They have advised me I will also receive an interest payment (as I transferred back out of TP a year ago) This interest payment is taxable by 20% and will be paid to HMRC direct by TP (which I understand) What I am not sure about is if the redress lump sum offer is taxable?

The capital part of the redress is not taxable as it's a refund, but any interest on that refund is taxable.

UnitedAreBack

Thanks very much for your help and advice