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?
What did Cumulus Investment Management Do Wrong?
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.