The government has turned down a request from a Labour MP to change the professional indemnity insurance (PII) rules for Independent Financial Advisers (IFAs). It says the current model is “working well” for most firms. Stephen Kinnock, MP for Aberavon,…read more
Pension scheme trustees hit with maximum fines for governance failings. Published October 2019
Pension scheme trustees have been fined by The Pension Regulator (TPR) for failing to provide chair of trustees’ statements for defined contribution pension schemes. Pitmans Trustees, a professional trustee firm, and James Hay, a self-invested personal pension (SIPP) provider, have…read more
Accounting giant fails to block tax negligence case on limitation grounds. Published September 2019
Multinational accounting firm PricewaterhouseCoopers (PwC) has failed to stop a tax negligence claim going to trial. The firm tried unsuccessfully to argue that the case was brought after the six-year limitation period had expired. The claimants were trustees and beneficiaries…read more
Accountants face £1 billion class action over tax advice. Published August 2019
Accountants are facing a £1 billion class action after recommending a tax avoidance scheme to their small business clients. Company owners were encouraged to buy partly paid ‘E’ shares in what HMRC is calling a ‘disguised remuneration’ scheme. Now the…read more
FOS reports low level of IFA complaints in 2018/19. Published July 2019
The Financial Ombudsman Service (FOS) has reported a relatively low level of complaints against Independent Financial Advisers (IFAs) in the last year. Its 2018/19 Annual Review showed that only one in 200 complaints received by the ombudsman was about financial…read more
HMRC wins £40m case against tax avoidance scheme. Published June 2019
HMRC is set to collect over £40 million in unpaid tax from users of a complex tax avoidance arrangement. The First Tier Tribunal has ruled that the promoters, Hyrax Resources, failed to inform HMRC about the scheme. It has ordered…read more
New regulator to oversee UK auditors after corporate failures. Published May 2019
The government is set to introduce a new UK audit regulator with greater powers in response to a string of high-profile audit scandals. The Audit, Reporting and Governance Authority will replace the Financial Reporting Council (FRC), which is to be…read more
Record damages awarded for audit failings. Published April 2019
Grant Thornton has been hit with the UK’s largest damages payment for negligent audit work. Fire and emergency services provider AssetCo has been awarded over £20 million as a result of negligent audits in 2009 and 2010. AssetCo was a…read more
Pay-outs for inadequate pension advice double in three years. Published March 2019
Compensation payments for inadequate pension transfer advice have hit £40 million, doubling in three years, the Financial Times has reported. The jump in compensation follows a seven-times increase in the value of defined benefit (DB) pension transfers over a similar…read more
Pension administrator liable for investment in ‘green oil’ fraud. Published February 2019
A pension administration firm has failed to overturn a Financial Ombudsman’s (FOS) decision after it invested a client’s money in a fraudulent ‘green oil’ scheme. Berkeley Burke, a Self-Invested Personal Pension (SIPP) administration firm, was ordered to compensate its client,…read more
