The Currency analytics
By Julie Binoche
The Upper Tribunal backed the Financial Conduct Authority's move to ban two financial advisers from the industry.
Both men worked at senior levels - Burdett at Synergy Wealth Limited and Goodchild at Westbury Private Clients LLP.
Burdett knew the risks but lied to clients anyway, telling them the investments were low or medium risk.
The FCA stepped in during 2016 to stop the damage, shutting down pension activities at both Synergy and Westbury.
Both companies went bust after that. The Financial Services Compensation Scheme has paid out over £1.4 million to victims so far, but claims keep coming in.
The tribunal didn't hold back when describing what happened. Burdett knowingly screwed over pension holders, while Goodchild's investment management was terrible.
The FSCS keeps handling compensation claims from this mess. Affected customers can still file claims if they haven't already.
The FCA has been cracking down harder on financial advisers who don't put clients first. This case shows they mean business when it comes to protecting consumers from bad advice.
Goodchild's investment strategy at Westbury was reckless according to the tribunal. Putting so much money into one offshore property project made no sense given that pension…
The compensation process continues as the FSCS works through remaining claims. Over £1.4 million has gone to victims already, but the final total will probably be higher.
The FCA's 2016 intervention marked the beginning of the end for both companies. Once regulators stopped their pension activities, the writing was on the wall.
Burdett's unauthorized director role at Synergy made his violations even worse. He should have gotten FCA approval before taking that position but didn't bother.
The FSCS continues processing claims from people hurt by these unsuitable investment schemes.
The offshore property developer that received 38% of client funds - Caribbean Property Investments Limited - collapsed in 2017, leaving investors with worthless holdings.
Industry data reveals pension transfer scandals cost the FSCS over £11.8 billion between 2019 and 2023.