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An investigation carried out by the Insolvency Service highlighted the fact that between December 2014 and December 2016, Reynolds had not acted in the best interests of the company’s clients. Prompted by Reynolds, hundreds of clients moved over £23 million from their existing pensions to Self-Invested Personal Pension Schemes (SIPPs), meaning that their funds were invested in a portfolio of investments in corporate bonds called Portfolio Six. They were extremely high risk and described as ‘relatively illiquid’ and ‘unregulated’. They were also excluded from the protection offered by the Financial Services Compensation Scheme (FSCS) when direct investments were made. In fact, the bonds were only available for direct investment to experienced high net worth or sophisticated investors, or individuals who had taken guidance from an independent financial company who stated that they had both the experience and understanding to fully appreciate the risks. According to Reynolds, Active Wealth acted upon due diligence that was undertaken by Portfolio Six’s fund manager. He would have been aware, however, or certainly should have been aware, that this would not be either impartial or independent, as Active Wealth’s directors were associated with companies withi n Portfolio Six.
The investigation concluded that in at least eight applications, Reynolds made false declarations in terms of describing the investment experience of his clients, and also the financial risks that they were willing to take.
Active Wealth clients claimed over £10 million in compensation from the FSCS in relation to the advice that they had received. Individual claims were capped at £50,000, however, so the true amount lost by Active Wealth clients actually equates to more than £24 million. In the Manchester High Court of Justice, on 25 May 2021, Darren Reynolds was disqualified as a company director for 13 years. What this means is that he cannot become involved in the promotion, formation, or management of a company without the permission of the court during that time.
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HMRC Pension Schemes Newsletter 130 – June 2021 29 June 2021
HMRC has published the latest Pension Schemes Newsletter – number 130, for June 2021, in order to update stakeholders on the latest news for pension schemes.
This edition includes content relating to:
• The extension to some of the temporary changes to pension processes due to coronavirus • Managing the Pension Schemes service • Signing into online services • Self-Invested Personal Pensions (SIPP) and Small Self-Administered Scheme (SSAS) pensions- connected tenants
Extension to temporary changes to pension processes
In a previous edition of the Pension Schemes Newsletter, HMRC advised that some temporary changes to certain pension processes would be kept in place until 30 June 2021, to help scheme administrators during the outbreak of coronavirus.
The following temporary changes will now be extended until 31 October 2021:
APSS105 relief at source repayment claims APSS106 relief at source repayment claims APSS590 relief at source declaration
• • •
• Submitting the APSS107 registered pension schemes annual statistical return without a signature
The other temporary changes listed in editions 118, 119, 120, 121 and 124 of the Pension Schemes Newsletter will still end on 30 June 2021.
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