A FATHER-of-three lost his entire £102,000 pension after receiving “negligent” advice to transfer the money into an unsuitable overseas scheme.

Lawyers acting for the 43-year-old IT manager in the banking industry said he should never have been advised to transfer out of his two pension funds.

He eventually received around £80,000 in compensation, less legal fees.

The man, identified only as Paul, from Bournemouth, was advised by Abrams Ashton & Co Financial Services Limited to take his money out of two pension schemes with Sunlife of Canada and Siemens and put it into a Qualifying Recognised Overseas Pension Scheme (QROPS), the Metro International Retirement Annuity. The scheme, managed by Castle Trust and Management Services, involved investment in sectors including disruptive technology, energy and land.

High Street Solicitors (HSS) brought a claim against Abrams Ashton & Co Financial Services, but another company – Omega Financial Solutions – was found by the Financial Services Compensation Scheme (FFSCS) to have significant involvement.

Paul said in a statement: “I was approached by High Street Solicitors some time back in regards to action they were taking against SIP (self-invested personal) pension mis-selling by Castle Trust Management in Gibraltar. I was exposed to around £100,000 and although sceptical at first, HSS has worked with FSCS to recover around £80,000 minus HSS fees.

“You could argue that I could’ve performed the same claim via FSCS and saved on HSS fees but in reality I have no clue on how to start this process, and I certainly would not have had the knowledge or funds to risk in taking Castle Trust to court and expose myself to even more financial loss because HSS have taken the case on a no win no fee basis.”

Dave Mcculloch, High Street Solicitors’ mis-selling manager, said: “Giving negligent financial advice has serious repercussions. Losing your entire pension is horrifying and is devastating to not just the person involved, but their family too.”

The FSCS said both Abrams Ashton & Co and Omega Financial Solutions were declared in default in 2019, meaning there were valid claims against them and the companies had gone out of business.

The scheme has received 83 claims against Abrams Ashton & Co since then and paid out more than £4.1million in compensation, while for Omega Financial Solutions, it had received 348 claims and paid £12.6m.

It said anyone owed money by an authorised financial firm that has gone out of business can claim directly from the FSCS for free. They can nominate a friend or relative to help if they need to.

Abrams Ashton accountants in Chorley, Lancashire, has stressed it is not connected with Abrams Ashton & Co Financial Services.