Mattioli Woods plc (‘Mattioli Woods’), the specialist wealth management and employee benefits business, has helped their clients recover nearly £10 million of lost funds via the Financial Services Compensation Scheme (FSCS), following a default transfer from Stadia Trustees Limited (‘Stadia Trustees’).
In early 2016, Mattioli Woods was appointed to assist with various SIPP schemes by the operator, Stadia Trustees, working in conjunction with the Financial Conduct Authority (FCA). Mattioli Woods’ role has been to act as the provider of the default scheme for receipt of transfers from Stadia Trustees andas part of this default transfer, approximately 1,000 clients transferred to Mattioli Woods’ SIPPs. Of these clients, the majority had exposure to non-standard and potentially high-risk investments, many of which are currently valued at nil while others have been written off entirely.
Following the default transfer, Mattioli Woods worked alongside the FSCS, in an attempt to assist clients to recover their lost funds. In 2018, Stadia Trustees was placed in default and the FSCS invited clients to claim for compensation for the failed or unsuitable investments, up to the value of £50,000. Mattioli Woods offered to assist these clients with their claims, free of charge, and worked with the FSCS to streamline the process to make it as easy as possible for them.
Since January 2018, Mattioli Woods has helped reclaim almost £10 million of funds for these clients who had lost most, if not all, of their retirement funds. The company has submitted over 350 claims to the FSCS and are continuing to assist clients with their claims over the coming months.
Alex Brown, Wealth Management Director at Mattioli Woods, said: ‘As a Group, we were proud to have been appointed to help secure the benefits for those clients of Stadia Trustees who had lost almost all of their hard-earned retirement funds. Non-standard investments are only appropriate for either sophisticated investors or high net worth individuals. Unfortunately, most of these clients were neither. To have assisted in helping to reclaim almost £10 million of these lost funds is a huge milestone and one that our clients have shown great appreciation for. At Mattioli Woods, our clients are at the heart of everything we do.’
Martyn Carey, Operational Legal Manager at Mattioli Woods, commented: ‘Following the default of Stadia Trustees in 2018, we worked hard with the FSCS to ensure we could assist clients, many of whom had little to no investment experience, to claim for compensation and recoup some of their lost funds. By offering this service free of charge, we have ensured clients do not suffer any further losses on investments that were not appropriate for them. Many of the investments these clients were invested in would have been a higher risk than they should have been allowed exposure to, therefore our assistance in helping clients make their claims has been integral to the process.’