Genwick Retirement Benefit Scheme & Uniway Systems Retirement Benefits Scheme (PO-16266)

Ombudsman’s Determination

Outcome

1. Dalriada and the Additional Applicants have submitted complaints that I have summarised as:-

   1.1. Ecroignard did not adequately inform members of the Schemes as to the nature, suitability and          performance of the underlying investments, nor provide an adequate indication of the value              and security of their benefits;

   1.2. Ecroignard failed to obtain independent investment advice and/or undertake sufficient due                diligence with regard to the investments made on behalf of the members and the Schemes;

   1.3. Ecroignard invested the members’ funds in high-risk, unregulated, illiquid investments/assets           that were inappropriate and did not comply with the regulations governing pension scheme              investments;

   1.4. Ecroignard failed to act upon requests from members in respect of their benefits in a timely                fashion, or at all;

   1.5. Ecroignard failed to maintain adequate financial records in relation to the Schemes, including            the investments made on behalf of the members;

   1.6. Ecroignard breached the investment duties imposed on trustees under Part 1 of the Pensions              Act 1995;

   1.7. Ecroignard failed in its duty as trustee to the Schemes, including (but not exhaustively) failing to       comply with statutory requirements, guidance from The Pensions Regulator and governance              requirements; and

   1.8. Ecroignard failed to operate the necessary controls to ensure the effective and transparent                  administration of the Schemes.

Complaint summary

   2. Having fully considered the evidence and submissions presented on the papers, and those provided        at the oral hearing, I uphold Dalriada’s and the Additional Applicants’ complaints. My reasons are as         follows:

   3. Ecroignard has acted in breach of trust causing scheme members pension loss by:

         3.1. failing to have regard, in relation to the Uniway Scheme, to Regulation 4, and in relation to the              Genwick Scheme, Regulation 7(2), of The Occupational Pension Schemes (Investment) Regulations            2005 (the Investment Regulations); 

        3.2. failing to avoid being in a position of conflicting interests and failing to have in place and                        operate the necessary internal controls, as required by section 249A of the Pensions Act 2004;                      and

        3.3. acting in breach of the duties imposed on it by Part I of the Pensions Act 1995 (1995 Act), and                    by case law.

 4. Ecroignard has committed acts of maladministration by failing to have regard to the Pension                    Regulator’s (TPR) Code in respect of investment governance.