IMPORTANT UPDATE: Some of our clients have been contacted by people claiming they act on behalf of Dolphin - offering the return of their deposits in order to facilitate their SIPP closure so they can move all their assets into a SSAS. Dolphin clients have also been offered the opportunity to buy shares in a firm called Vordere.
We urge you not agree to move your funds before discussing the transaction with a regulated financial adviser. You may not be aware of it – but your investment is at risk.
We have seen pension investments which have been arranged by regulated financial advisers and unregulated third party introducers such as Investaco (also known as The Mortgage Shop (South East) Limited), 1 Stop Financial Services, Build your Wealth Ltd just to name a few.
Some advisers leave the regulated environment only to set up under the same name, failing to tell their clients that they are no longer authorised to give advice!
Dolphin Capital GMBH
Whilst the Dolphin investment is not a scam, the investment is high risk and unregulated (UCIS – Unregulated Collective Investment Scheme) which should not be promoted to any retail client – a person which can’t afford to lose their pension.
The firm has offered a 2 and a 5 year investment option for loaning the firm money in order to invest in German listed buildings.
Clients can choose if they would like to receive an income or for their funds to grow. Fixed returns are offered at between 10 and 12 percent. A Dolphin Trust Loan Note is issued accordingly.
It all looks good when they receive a quarterly income – but then people may not notice that they don’t receive the funds on time, when SIPP statements are only issued annually.
However, it may be only once the 5 year term is up, and the company is failing to return the deposit or the guaranteed interest, that clients will start to worry.
SSAS Pensions
But then – very conveniently – Dolphin offer an additional investment opportunity, thus ensuring no complaints are raised, and potentially taking clients over six years from the point of sale – leaving the case open to dismissal on the grounds of time barring rules!
At this point they apply high pressure sales tactics when arranging home visits trying to convince clients to move their pension into a SSAS!
A SSAS (Small Self Administered Scheme) is an unregulated pension product, and we have found that the majority of SSAS providers associated with such high risk and unregulated investments are also not regulated by the FCA.
Any client who goes down that route is therefore left with no way of recuperating their losses – but that is obviously not mentioned during the sales pitch the firms apply.
To the contrary, the sales pitch explains the need to open a new SSAS pension with the agent offering to complete all the relevant paperwork – failing to acknowledge that they are not regulated to give pension switching or investment advice!
We have found that the sales agent may even strongly recommend that clients update their Will or consider Lasting Powers of Attorney documents to protect all their wealth. This makes client feel that they are in safe hands as it sounds as though the unregulated sales agent has got all the relevant qualifications in place to deal with their affairs.
Review your Investment
If you have invested it is from utmost importance to get the original transaction reviewed before agreeing any new deal with the firm.
If we find that the company involved has failed to adhere to rules and regulations you may be entitled to compensation.
But please be aware of time limitation rules – don’t run out of time – contact us today!