Good to know: You do not need to use a claims management company to make your complaint to your pension provider or intermediary. If your complaint is not successful you can refer it to the Financial Ombudsman Service or the Pension Ombudsman yourself for free if the firm is still trading. For eligible failed firms, you can refer a claim to the Financial Services Compensation Scheme for free.
Colonial Capital Bonds was a scheme designed to profit off of the global housing crash, but it actually duped thousands of British investors out of their savings. The fund was heavily associated with BlackStar Wealth Management, as well as Colonial Capital plc. Unsuspecting clients were mis-sold SIPP funds that promised that their money would be invested in Chicago area properties. However, the funds were unregulated by the FCA, and clients lost their savings. Did this happen to you?
Colonial Capital Group Corporate Bonds were heavily promoted by Black Star Wealth Management, as well as unregulated pension introducer Avacade. The group also including Colonial Capital plc and Colonial Capital LLC, both of which were directed by Kevin Neil and Peter Shuttleworth.
The scheme was designed to profit from the housing market crash in the US, specifically in the Chicago area. They claimed that they were planning to buy cheap properties, refurbish them, and then rent them out for high rental yields. These three-year bonds were meant to earn a 12% return, with interest payments paid out every six months. They promised investors that the number of bonds would never exceed 85% of the portfolio’s value.
However, this was not to be the case. Investors were mis-sold SIPP pension plans and lost more than £12 million. BlackStar advised them to transfer their savings from safe and reliable pension funds into unregulated SIPP schemes. As of 29 April 2019, The Financial Ombudsman Service (FOS) has ordered Blackstar Wealth Management to offer mis-sold SIPP compensation to at least five different Colonial clients. If something similar happened to you, you could be eligible for the same payments.
Did you invest any of your pension funds in Colonial Capital Bonds on the advice of Blackstar Wealth Management or any other firm? Blackstar Wealth Management is now officially dissolved, and they can no longer pay out any returns. However, the Financial Services Compensation Scheme (FSCS) has made mis-sold SIPP compensation available to people like you. If a Blackstar Wealth Management or any other advisor convinced you to put your pension money into their investments, only for that investment to fail, you might qualify for mis-sold SIPP compensation.
Our claims experts can advise on whether you could qualify for mis-sold SIPP compensation. Apply online today for an information pack to learn more.
FSCS BlackStar Wealth Management and Colonial Capital Bonds Claim
Apply NowBlackStar Wealth Management, who notoriously pushed investment in Colonial Capital Bonds, has been declared in default by the Financial Services Compensation Scheme. This means that the UK’s compensation scheme for failed financial services firms will pay compensation for valid mis-selling claims. Allegiant can assist you with claims to the FSCS about BlackStar Wealth Management. Fill in our online application form to get started.
In this article, Allegiant’s Pensions & Investments Manager, Andy Ramsay, explores the fundamental differences between the Court and Ombudsman routes for resolving pension & investment claims. The article highlights key differences in:-
Andy further explores outdated preconceptions about Claims Management Companies. This short summary is essential reading for anyone planning on making a pension or investment claim with the assistance of a CMC or law firm.
Click to ReadYou may have heard of the Financial Services Compensation Scheme (FSCS), but do you fully understand its vital role within the UK’s financial services sector? In this short piece, we look at:-
This article will be of particular interest to anyone with a potential compensation claim against a financial service provider that has collapsed.
Click to ReadThe Financial Conduct Authority (FCA) has identified ‘serious and ongoing failings’ by both Individual Financial Advisers (IFAs) and Self-Invested Personal Pension Providers. Typically, mis-selling is related to the “wrong” type of investor being given poor or misleading advice as to what investments were relatively safe and right for them. In this summary, we look at What a SIPP is, and how they have been mis-sold, together with the FCA’s review into sector malpractice.
Click to ReadPre complaint investigation and analysis. No paperwork? Don't Worry! We could still help.
Once we've assessed claim prospects, we make a pension complaint to the Ombudsman or FSCS, where appropriate
Pension complaint response received. We'll carefully analyse the response and advise you on how to proceed.
If appropriate resolution cannot be reached with a live firm, and we disagree with their stance, we will refer the claim to Ombudsman on your instruction.
As of the 1st March 2022 we have implemented a new fee structure which we have explained below. If you signed your contract with us prior to the 1st March 2022, please refer to your signed claims pack for our previous fee terms.
Our fees are owed upon a successful claim and will depend on the Gross Compensation you receive. “Gross Compensation” means the amount awarded to you whether this is paid directly to you or paid into an investment or pension, and prior to any deduction of any income tax due to HMRC on your award. Please refer to the definition of “Gross Compensation” and Section 5 of our Terms of Engagement for further information including a table showing how our fees work in different scenarios.
If successful, your fee will be calculated based on which band your redress falls into and will be charged by whichever is the lowest of:
The below table outlines the redress bands, the maximum percentage rate of charge and the maximum total charge is for each band.
Band | Redress | % Charge (with VAT) | Maximum charge (with VAT) (£) | Maximum charge (without VAT) |(£) |
1 | 1 – 1499 | 36% | 504 | 420 |
2 | 1,500 – 9,999 | 33.6% | 3000 | 2500 |
3 | 10,000 – 24,999 | 30% | 6000 | 5000 |
4 | 25,000 – 49,999 | 24% | 9000 | 7500 |
5 | 50,000+ | 18% | 12,000 | 10,000 |
Examples of how this would work in practice:
Band | Lower example | Higher example |
1 | You receive £100 in redress; our fee would be £36. | You receive £1499 in redress; our fee would be £504. |
2 | You receive £1,600 in redress; our fee would be £537.60. | You receive £9,999 in redress; our fee would be £3,000. |
3 | You receive £12,000 in redress; our fee would be £3,600. | You receive £24,999 in redress; our fee would be £6,000. |
4 | You receive £30,350 in redress; our fee would be £7,284. | You receive £49,999 in redress; our fee would be £9,000. |
5 | You receive £55,000 in redress; our fee would be £9,900. | You receive £100,000 in redress; our fee would be £12,000. |
Please note, the above fee examples are for illustration purposes only. They are not an estimate of the likely outcome or fee you will need to pay. Each claim depends on its own merits.
It is possible that our fee may become payable before you have access to your pension or investment which may result in you having to pay our fee from your own funds
You can cancel for free at any time within 14-days without giving any reason and without incurring any liability. You can communicate your cancellation by telephone, post, email or online.
You can cancel this agreement at any time after the 14-day cancellation period. However, if a complaint submitted by us is successful, the Success Fee will apply in the usual way.
You can cancel by post: Allegiant Finance Services Limited, Freepost RTYU–XUTZ–YKJC, 400 Chadwick House, Warrington Road, Birchwood Park, Warrington, WA3 6AE; (b) by email: [email protected]; (c) by telephone: 0345 544 1563; or (d) online at https://allegiant.co.uk/compliance/cancellation.
Our small, dedicated pensions team provide a personal touch
We’ll treat your claim as strictly confidential. Your personal information is safe with us.
We’ve serviced over 100,000 clients across all service lines since our inception in 2010.
We could still help if you don’t have all your paperwork or details. Our team are experienced in helping locate paperwork where possible.
Our online application system and claim audit surveys enable us to offer an efficient and convenient claims journey.
Good to know: You do not need to use a claims management company to make your complaint to your pension provider or intermediary. If your complaint is not successful you can refer it to the Financial Ombudsman Service or the Pension Ombudsman yourself for free if the firm is still trading. For eligible failed firms, you can refer a claim to the Financial Services Compensation Scheme for free.