I put £64,000 in Malta scheme on HMRC’s list

A GRANDFATHER lost most of his £64,000 pension pot after being persuaded to switch to an overseas scheme recognised and listed by HMRC.

Derrick Towlson, a former plumber and heating engineer, moved his money to the Malta-based scheme after being cold-called in 2013 by Continental Wealth Management.

The 63-year-old said the ‘big selling point’ was that the money would be put into the Momentum Malta Retirement Trust which is on HMRC’s list of recognised overseas schemes.

He was told his savings would have grown to £80,000 by the end of this year – instead he has just £19,000.

Mr Towlson, who lives with wife Carol near Colwyn Bay in North Wales, said he had to pay huge fees and some of his cash was lost in high-risk investments. He is now withdrawing the cash but exit fees will cost him another £4,000.

‘This is destroying lives,’ he said. ‘The UK government has left the doors wide open for fraud and scams. There is such a lack of control, it’s incredible. It’s so lax. It’s giving the UK really bad name across the globe.

‘The HMRC listing was a big selling point. You think it must be OK.’

Momentum said all investment costs were fully disclosed and authorised and verified by the pension members and their advisers. It also said it took action as soon as it discovered the problems with CWM.