Eleven Property Pension Scheme, SHK Property Services Pension, Gilbert Trading Pension Scheme (CAS-56320-R9K9, CAS-29144-G2B0, CAS-64379-Y9G6, CAS-82685-J8S7, CAS-84074-G0W5)

Ombudsman’s Determination

Outcome

Having fully considered the evidence and submissions presented in writing, I uphold the complaints against the Trustees and Brambles. My reasons are as follows. 

The Trustees have committed various breaches of trust and maladministration by:

• operating a pension liberation arrangement by making unauthorised payments to the Schemes’ members in breach of trust and in contravention of section 255 of the Pensions Act 2004;

• failing to have adequate regard to the need for diversification of investments, as required by Regulation 7(2) of The Occupational Pension Schemes (Investment) Regulations 2005 (the Investment Regulations);

• breaching their duties in relation to investing the Applicants’ assets imposed on them by Part I of the Pensions Act 1995 (1995 Act) and by case law;

• breaching the requirements to avoid or manage conflicts of interest set out at law and in the Pensions Regulator’s guidance; and

• breaching their statutory duties and regulatory guidance regarding governance and administration oversight.

In certain of the breaches and maladministration committed, I find that the Individual Trustees have acted dishonestly. 

I consider that there has been maladministration on the part of Brambles for its failure in handling the Applicants’ concerns and in its record-keeping. I also find that Brambles has acted as a dishonest assistant to certain breaches of trust.

Complaint summary

The Applicants have complained on similar points.

Ms Y, a member of the Eleven Scheme, has said:-

• Brambles has provided her with a very poor service and has failed to respond to her requests for information.

• Additionally, she is concerned that she cannot transfer out of the Eleven Scheme or sell the investment and has never received any rental return.

Mr S, a member of the Eleven Scheme, has said:-

• He has been scammed by Brambles and the Eleven Scheme.

• He received no annual statements and no advice as to how he can access his money. This situation has affected his mental health.

Mr E, a member of the SHK Scheme, has said:-

• He has suffered a financial loss of £24,387.69 and was told by the FCA that the SHK Scheme was likely a scam. 

• Brambles has not provided him with the information he has requested.

Mr Y, a member of the SHK Scheme, has said:-

• Brambles has stopped engaging with him and he has been unable to access his pension commencement lump sum or transfer away from the SHK Scheme.

Mr G, a member of the Gilbert Scheme, has said:-

• He was expecting his pension to be transferred in early May 2019. There have since been delays, and only half of the pension has been transferred. He believes he is owed over £29,000 from the Gilbert Scheme. He is also concerned about how the Trustees have acted in relation to investing his pension. 

• Brambles has refused to answer his numerous questions or respond to his complaint.