An investigation by the Pensions Ombudsman’s Pensions Dishonesty Unit (PDU) has resulted in a £5.2m repayment order for trustees found personally liable for breaching their duties and facilitating pension liberation arrangements.
Trustees Simon Hamilton Kaigh and Michael McNally were held accountable for making high-risk, undiversified investments, including offshore funds linked to them, which violated their responsibilities and facilitated pension liberation.
The schemes involved include the Eleven Property Pension Scheme, the SHK Property Services Pension Scheme, and the Gilbert Trading Pension Scheme. Scheme administrator Brambles Administration Limited was also found to be a dishonest assistant.
Member complaints regarding poor communication, a lack of information about investment performance, and trouble transferring money or obtaining benefits sparked the investigation.
The Deputy Pensions Ombudsman directed the trustees to repay impacted individuals and return £5.2 million to the schemes, with two applicants receiving £6,000 apiece, while three others received £4,000 each.
According to the PDU, this case underscores the need for strong governance, compliance, and due diligence to avoid legal and financial risks and follows similar actions, such as the Ecroignard Trustees Limited case, highlighting the consequences of trustee negligence and involvement in pension liberation schemes.
Pensions Ombudsman Dominic Harris says: “This is another example of the important work of the Pensions Dishonesty Unit. Cases that the PDU investigate are complex and resource-intensive but, as well as the directions to repay schemes more than £40m in total, its work is also vital in raising people’s awareness of scams and holding those who act dishonestly accountable for their actions.”
