07 July 2011
A High Court judge has issued a freezing order affecting over a
million pounds of assets. Papers released by the High Court
revealed that three related firms - Ark Business Consulting, Ark
Commercial Pension Planning and Ark Commercial Retirement Planning
- had been prevented by Mr Justice Henderson from moving around
£1.08m from the country to Cyprus. The monies frozen relate
to fees billed by the firms when a pension scheme member tries to
"unlock" their monies while under age 55. The schemes claim to be
able to circumvent minimum pension age rules by writing loans (of
up to 50% of the pension scheme funds) to members instead of paying
pension benefits.
The law firm McGrigors is acting on behalf of Dalriada Trustees
and their pensions partner Ian Gordon said: "Many of these
so-called unlocking schemes test the boundaries of what is legal
and effective, and everyone should be made fully aware of the
risks. The types of organisations who typically market schemes of
this nature are often registered abroad and as such are not
regulated by the FSA. We would advise anyone who is approached with
an 'unlocking' or reciprocation proposition to proceed with the
utmost caution. Some press reports have indicated that pensions
reciprocation agreements are marketed as a means to free up
investment for capital in overseas real estate ventures, and that
type of arrangement should sound alarm bells."
A Dalriada Trustees spokesman added: "We believe that schemes of
this sort have been marketed to people who, through no fault of
their own, have not fully understood their import and who do not
realise that they could potentially be putting a substantial
proportion of their pensions savings at risk."
At the end of May The Pensions Regulator appointed an
independent trustee firm - Dalriada Trustees Limited - for six
firms offering pension reciprocation plans. The schemes concerned
are:
- Cranborne Star Pension Scheme
- Grosvenor Parade Pension Scheme
- Tallton Place Pension Scheme
- The Lancaster Pension Scheme
- The Portman Pension Scheme
- Woodcroft House Pension Scheme
A Dalriada press release has details of the schemes involved as
a well as a FAQ and contact number for concerned members.
http://www.dalriadatrustees.co.uk/ark/
The Pensions Regulator and the Financial Services Authority also
issued warnings about such schemes last month:
TPAS - Regulators Issue Warning on Pension Loan
Schemes
