Cumulus Investment Management was operated by two independent financial advisors. The company knowingly mis-sold SIPP pension funds to British individuals between 2009 and 2017 and failed to pay compensation owed to their clients. Cumulus is no longer authorized by the Financial Conduct Authority (FCA). Did you deal with Cumulus while they were trading?
The advisors at Cumulus mis-sold SIPP pension products – they advised clients to invest in high-risk investments and misled them about the level of risk. Mr. Stephens invested clients’ money into his own unregulated property fund in what the Financial Ombudsman Service (FOS) has called a ‘clear conflict of interest.’
Since 2015, the FOS has upheld 12 complaints against Cumulus Investment Management. These complaints were related to advise Mr. Stephens gave relating to the Cumulus Ukrainian Property fund, which was listed on the Bermudan Stock Exchange. Redemptions from this fund have been frozen since June 2015.
In a typical example of a complaint, Mrs. S was advised to make a SIPP investment of £24,900 by Mr. H, an unregulated advisor. While Cumulus claimed it then advised on an ‘execution-only’ basis and should not be held responsible, the FOS ruled that Cumulus had a duty to advise Mrs. S about the nature of the transaction.
They also stated that Mrs. S should never have been offered this fund in the first place. She was not a “sophisticated investor” and did not have the resources to withstand significant losses. The ombudsman referred to a significant conflict of interest, as the fund’s shares were divided between Cumulus’s two directors. He said, “the fund prospectus explains how the charges and fees would be paid. Clearly, the directors stood to gain by increasing the value of the fund.”
Are you entitled to mis-sold SIPP compensation from Cumulus Investment Management?
Did you invest any of your pension funds with Cumulus Investment Management? Cumulus Investment Management is now officially dissolved, and they can no longer pay out any returns. However, the Financial Services Compensation Scheme has made £120 million available to help people like you. If a Cumulus Investment Management 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 Cumulus Investment Management Claim
Cumulus Investment Management 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 Cumulus Investment Management. Fill in our online application form to get started.
You do not need to use a claims management firm to make your claim and if your complaint is not successful you can refer it to the Financial Ombudsman Service or in the case of a failed firm, the Financial Services Compensation Scheme, for free.Apply Now
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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|
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
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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.
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