FCA acts on unregulated firm promoting SIPP investments

The FCA has begun civil proceedings in relation to “alleged misleading statements” on pension investments by a lead generation firm called Avacade Investment Options. The watchdog says the unregulated firm, reported as using an address in Lymm, Cheshire, produced so-called pension reports for pension savers as a way to promote alternative investments to SIPP investors in areas such a tree plantations.The regulator is seeking compensation for consumers from Avacade Limited, which traded as Avacade Investment Options, and Alexandra Associates (UK) Limited, trading as Avacade Future Solutions, and against Craig Lummis, Lee Lummis and Raymond Fox.It is alleged by the FCA that Avacade and Alexandra Associates provided a pension report service which was marketed as summarising a consumer’s pension information and retirement objectives. The firms offered this service to help consumers decide what to do with their pension.At the same time as providing the report service, Avacade then promoted self-invested personal pensions (SIPPs) and investments in alternative investments, such as tree plantations.The FCA alleges that these firms made misleading statements, carried out regulated activities in the UK without FCA authorisation or exemption, and communicated financial promotions without the required authorisation or approval. The regulator says this was contrary to the Financial Services and Markets Act 2000 and the Financial Services Act 2012.The FCA also alleges that Craig Lummis, Lee Lummis and Raymond Fox were each knowingly concerned in Avacade’s breaches and Craig Lummis and Lee Lummis were each knowingly concerned in Alexandra Associate’s breaches.The FCA is seeking ‘restitution orders’ in favour of consumers who were affected by the breaches as well as declarations of contravention and injunctions to prevent further breaches. The court proceedings are at an early stage and no date for trial has been set.Liquidators for Avacade Limited were appointed on 11 November in Manchester.

FCA acts on unregulated firm promoting SIPP investments

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