A Claims Management Company

Mis-Sold investment - One Stop Financial Services

Latest update: 19th August, 2019 (FSCS)

Case Points

Total amount invested

Over £112 million.

Why did people invest in it?

1 Stop offered unregulated overseas investments which typically offer higher returns on investment.

Why was it mis-selling?

The directors of 1 Stop were banned by the FCA for failing to provide the appropriate advice and investments for their customers individual needs.

Potential value of cases

Estimated at £56,000 per client (based on £112 million divided between 2000 customers).

Summary

1 Stop Financial Services offered pensions transfer services to their clients. As of April 2014, they had 1,959 customers and over £122 million in assets under management. They specialised in offering non-standard investments such as the Harlequin Property investment scheme. £112 million of this £122 million total was invested in non-standard investments, of which 49% of customers had some exposure to Harlequin.

In April 2014, two partners of 1 Stop Financial Services were banned from acting by the FCA for a range of offences related to the mis-selling of pensions and inappropriate pensions transfers. These offences included: failing to appropriately recommend products based upon their customers stated requirements; failing to ensure that their firm complied with regulatory requirements; delegating 1 Stop’s compliance requirements to an external firm, and then failing to provide oversight; and for failing to disclose a conflict of interest to their clients.

This conflict of interest was that both Mr Rees and Mr Hughes, the two partners of 1 Stop, were also the directors and shareholders of EGI, a firm that referred almost a quarter of 1 Stop’s customers. This meant that Rees and Hughes were both benefitting from the fees paid for advice from 1 Stop, and from the commission paid to EGI.

Alongside their ban, Rees and Hughes were also fined by the FCA. This fine amounted to £490,100, which they agreed to pay to the FSCS in order to compensate customers of 1 Stop Financial Services.

You are likely to have a potential claim on the basis of advice from a regulated firm. The claim above is only an example of a potential claim. Each claim is judged on its individual merits and as such, we cannot guarantee that your individual claim will be successful or that you indeed may have grounds for a claim.

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