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Pembrokeshire Mortgage Centre fined £2.3m for ‘woeful pensions advice’

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THE FINANCIAL CONDUCT AUTHORITY (FCA) has fined Pembrokeshire Mortgage Centre Limited, which was based in Saundersfoot, £2,354,331 for unsuitable advice to consumers to transfer out of the British Steel Pension Scheme (BSPS) and other defined benefit pension schemes.

The FCA’s view is that most people should keep the guaranteed income provided by a DB pension.

Pembrokeshire Mortgage Centre advised 420 consumers, nearly two-thirds of whom were BSPS members, on whether to transfer out of their defined benefit scheme – 93% were advised to transfer, and as a resulting PMC earned over £2m in transfer and ongoing advice fees.

Mark Steward, executive director of enforcement and market oversight, said: “Pembrokeshire Mortgage Centre advised hundreds of consumers to give up valuable defined benefit pensions without any adequate justification or rationale, using generic, templated advice not tailored to the specific circumstances of their customers while earning fees in doing so.

“The quality of advice seen here was woeful.”

As of 30 November 2022, the Financial Services Compensation Scheme (FSCS) has upheld 213 pension transfer claims against Pembrokeshire Mortgage Centre and paid out more than £13.3m in compensation.

Many of the people advised were in a vulnerable position due to the uncertainty surrounding the future of the British Steel Pension Scheme and the short timescale they had to make a decision.

But the regulator found that 60% of people did not receive the quality of advice they needed to make an informed decision.

However, the FCA said they did not receive the quality of advice they needed to make an informed decision.

The regulator said they needed clear, objective and expert advice. Instead, Pembrokeshire Mortgage Centre gave unsuitable advice in 60% of cases, even higher than BSPS as a whole.

The failings included the provision of generic suitability reports that were not tailored to the circumstances of individual consumers and contained contradictory, misleading and confusing statements.

The FCA said Pembrokeshire Mortgage Centre also failed to have adequate resources to deal with the increase in cases caused by BSPS, further impacting the quality of advice provided.

Many consumers, according to the regulator, were advised to transfer out even though they were relying on the guaranteed income to fund their retirement and could not afford to bear the risk of transferring out.

This included those who needed the money to provide for dependents needing long-term care.

Steward added: “The failings were particularly egregious in the context of the British Steel Pension Scheme, where customers were in an unusually vulnerable position.

“The FCA’s investigation into the involvement of others in these matters remains ongoing.

“Any consumers who were advised to transfer should contact the Financial Services Compensation Scheme to see if they are owed redress.”

Pembrokeshire Mortgage Centre Limited is currently in liquidation, The Pembrokeshire Herald understands.

The said that it would FCA will give preference to creditors (some of whom may be consumers), ahead of its financial penalty, to maximise funds available for redress – meaning it is unlikely that the fine would ever be paid.

The FCA has said that it continues to progress around 30 ongoing enforcement investigations into firms and individuals relating wholly or partly to BSPS advice, all of which are at a very advanced stage, and some are in litigation.

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Business

Paul Butterworth appointed Vice Chair of Regional Learning and Skills Partnership

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Paul Butterworth, the CEO of Chambers Wales South East, South West and Mid, has been appointed as the new Vice Chair of the Regional Learning and Skills Partnership (RLSP) for south-west Wales.

Covering Carmarthenshire, Neath Port Talbot, Pembrokeshire and Swansea, the RLSP is dedicated to bridging the gap between education, skills, and regeneration. It aims to ensure that the skills provision is aligned with the economic priorities and opportunities of the region, as well as tackling the new skills landscape that is happening within the energy, construction, manufacturing and digital sectors.

As CEO of Chambers Wales, Paul brings a wealth of experience and a passion for the economic and skills development of Welsh businesses with him to the board.

As the voice of the business community with policymakers, Paul will advocate for enhanced skills training, infrastructure improvements and the creation of skilled jobs, all aimed at creating local economic growth.

Upon his appointment, Paul said: “I am determined to create a better and fairer business landscape for West Wales to ensure that the local economy has the best available skills development for future project development and the transition into the green economy and energy sector to ensure West Wales thrives.”

Jane Lewis, Regional Partnerships Manager at RLSP, said: “We are delighted to have Paul on the board. He will be instrumental in achieving our goals and look forward to the positive impact his appointment will have on the region.”

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Business

Expansion for Ashmole & Co with acquisition of Jones Ward Accountants

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CHARTERED, Certified Accountants, Ashmole & Co, are delighted to announce their expansion following the acquisition of JonesWard accountancy firm in Carmarthen.

Ashmole & Co Carmarthen has today taken over JonesWard who have closed their office in Lammas Street, Carmarthen. All JonesWard staff, including Ian Jones and James Ward, have transferred over to Ashmole & Co and will be based in the Old School, the Quay, Carmarthen.

JonesWard informed their clients that the administrative burden of running a practice had increased significantly over recent years due to the constant changing money laundering and tax regulations, software requirements and so on. Over the past 12 months it had become more challenging to maintain the level of service they had been used to providing.

Ian Jones said, “We feel Ashmole & Co share the same values as us and have the necessary expertise and resources to ensure we can continue to provide the personal touch and level of service clients have been accustomed to. Myself and James are not retiring but we will be supported by Ashmole & Co’s partners and staff from now on in their Carmarthen office.”

Ashmole & Co partners Sharon George, Carwyn Morgan and Vinal Patel will strive to ensure JonesWard clients will continue to receive the high quality of service they are used to.

Vinal Patel, Partner with Ashmole & Co said, “It is our priority to make the transition as smooth as possible with all employees of JonesWard having already transferred to Ashmole & Co and are now based in our office on the Quay in Carmarthen. We look forward to meeting our new clients and working closely with them to meet their needs in the future.”

Ashmole & Co Chartered and Certified Accountants have been established since 1897 and are one of the largest accountancies and auditing practices in south Wales, now operating from thirteen offices throughout south and west Wales including Swansea, Carmarthen, Haverfordwest and Ammanford.   

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Dragon LNG explores integration of LNG and CO2 liquefaction processes

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DRAGON LNG, based in Waterston, Milford Haven, recently announced a significant step towards sustainable energy solutions.

The company awarded a contract to Worley, global professional services company of energy, chemicals and resources experts, to conduct a comprehensive feasibility study.

The study is focussing on exploring the potential benefits of integrating LNG (Liquefied Natural Gas)
regasification and CO2 (Carbon Dioxide) liquefaction processes at Dragon LNG’s facilities. This integration holds promise for a more efficient operation, with the potential to reduce energy consumption, carbon intensity and the levelized cost of CO2 export not only at the Dragon site but also for Haven industry companies.

If feasible, the technology at Dragon would support wider collaboration with RWE Pembroke Net Zero Centre, whose CO2 would be transported to the Dragon facility for processing before being shipped via non-pipeline transport (NPT) to carbon sequestration sites.

Key aspects to be addressed in the feasibility study include:

  • Technical Solutions: Worley will evaluate various technical approaches to seamlessly integrate LNG and
  • CO2 liquefaction processes, ensuring optimal energy efficiency and effectiveness.
  • Carbon Intensity Reduction: Dragon LNG is committed to sustainability, and the study will assess how the integration of processes can contribute to lowering the carbon intensity of operations, aligning with broader environmental goals.
  • Economic Viability: Understanding the financial implications is crucial. The study will delve into the levelized cost of CO2 and other economic factors to determine the feasibility and financial benefits of the proposed integration.

Commenting on the partnership, a spokesperson for Dragon LNG stated, “We are excited to collaborate with Worley on this important initiative. As a responsible energy provider, Dragon LNG is continuously seeking innovative ways to enhance our operations while minimizing our environmental footprint. This feasibility study represents a significant step towards achieving those objectives.”

Worley’s expertise in engineering and consultancy services including in the CO2 and LNG sectors makes them an ideal partner for this endeavour. Their track record of delivering sustainability solutions aligns perfectly with the ambitious goals of Dragon LNG.

This collaboration underscores Dragon LNG’s commitment to driving sustainable practices within the energy sector. By exploring the integration of LNG regasification and CO2 liquefaction processes, the company aims to pave the way for a cleaner, more efficient energy future with their ambition of a net zero terminal by 2029.

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