MPs demand £5m payout for pensioner fraud victims
MPS are demanding compensation for 19 pensioners who lost more than £5million in an alleged fraud case involving a financial adviser.
The four MPs, including Caroline Lucas of the Green Party, have written to the Financial Conduct Authority demanding that it takes action.
The pensioners lost their life savings but were denied help by the Financial Services Compensation Scheme and the FCA claimed that there was nothing it could do.
Ms Lucas, Tory MPs Derek Thomas and Simon Hoare plus independent David Warbuton all have constituents who have lost hundreds of thousands of pounds in the affair.
The appeal to FCA chief executive Nikhil Rathi highlights their plight, saying “many now find themselves in penury through no fault of their own.
“Compensation remains long overdue for these victims.”
The MPs claim the regulator failed to monitor or investigate financial advisers or accountancy firms involved in the loss.
They wrote: “One of [the FCA’s] chief objectives is to protect consumers by setting rules and standards for financial firms to follow.We are at a loss to understand why the FCA feels it cannot intervene.
“We urge that this is reviewed and that due weight be given to the circumstances we have outlined.” Nick Moger, an accountant representing the victims, said: “It is vitally important that the FCA look at this again. Many people have lost their life savings.The way in which the relevant authorities have washed their hands of this case when it is their job to protect the consumer is frankly disgraceful.” David Warburton, the MP for Somerton and Frome, said: “Financial fraud is a serious and devastating crime for those who fall victim to it. As this is an ongoing case I can’t comment further, but I sincerely hope justice will be served for those who have been affected.”
An FCA spokesperson said: “We take allegations of fraud and unauthorised individuals doing regulated business very seriously.
“We will respond to the letter in due course and continue to assist law enforcement in their work.”
●A former financial adviser last month pleaded not guilty at Salisbury Crown Court to 28 counts of fraud against 19 former clients totalling £5,016,770 between 2011 and 2018.
The man was given unconditional bail and is due to face a trial in April next year.