It promises the funds will be released within six to eight weeks after a free consultation with a pensions consultant, but a solicitor warned the practises looked “scary” for anyone seeking an adviser compliant with UK regulations.
“The website says everything is possible: unlocking pensions at any age. This is either fraud, a lie, or both. We would never advise a pension member to use this site,” Michael Reason, partner at Michael Reason & Partners, said.
He contested the website’s “unique” offering, stressing services in this area were heavily regulated in the UK, and that this service was unlikely to be legally compliant.
HM Revenue & Customs also told PM it has concerns about the website’s practises. “Anyone who gains access to their pension fund before their minimum pension age outside of the normal methods permitted under the rules runs the risk of becoming liable for unauthorised payments charges,” a spokesman said.
“Any individual who obtains access to accrued pension rights through an arrangement that directly or indirectly provides a loan to the individual runs the risk of being taxed at a rate of 55%. Individuals stand to lose out considerably by entering into such arrangements.”
The website claims to offer a range of options to facilitate selling members’ pensions, stating it has already “helped many clients to obtain the cash they require fast”, but fails to specify what options are available. It also appears to be unregulated, stating “there are loopholes in the UK pensions regulations”.
Mike Lightfoot, pensions director at Close Trustees, warned PM there were hundreds of such sites springing up across the internet as a symptom of “cash-strapped times”.
PM attempted to contact the owners of the site who, according to our investigations, are based in the UK, but were unable to reach them.
