Quilter adds further £7m to Lighthouse DB transfer compensation fund

Tom Ellis
clock • 2 min read
Quilter adds further £7m to Lighthouse DB transfer compensation fund

Quilter has revealed its review of Lighthouse defined benefit (DB) transfer advice has now moved beyond advice given to steelworkers and has set aside an extra £7m to cover the compensation costs for unsuitable advice given to clients of the firm.

Quilter bought Lighthouse Group in June 2019, adding an additional 390 advisers to the firm's growing adviser operation. However, an affinity deal between Lighthouse and the British Steel steelworkers' union resulted in 300 DB transfers, which are now being re-examined.

Quilter has now revealed the examinations are going beyond DB transfers involving only British Steel workers. The advice giant said its skilled persons review has identified instances of more unsuitable transfer advice unrelated to steelworkers, which was why it has added another £7m to its potential compensation pot. 

The advice giant has now set aside £35m in total to cover the costs of compensation for Lighthouse DB transfer advice. The advice given by Lighthouse, which had professional indemnity cover for the transfer work, predates Quilter's acquisition of the adviser network.

Quilter said: "We have continued to work closely with the skilled person review investigating the Lighthouse DB to DC transfers. Our focus remains on doing the right thing by any customers who were poorly advised, even though this advice predates our acquisition of Lighthouse. The skilled persons review has identified some instances of further unsuitable DB to DC advice given by Lighthouse advisers beyond that relating to British Steel Pension Scheme transfers."

Professional Adviser first revealed four Lighthouse advisers were based at British Steel plants - two at Scunthorpe and two at Teesside - as a result of the affinity partnership between Lighthouse and Unite.

PA then went on to reveal Quilter was initially facing more than 40 complaints relating to advice given to British Steel workers by Lighthouse and an adviser from Quilter FP.

The majority of the claims related to advice given by Lighthouse, while some stemmed from advice given by Quilter adviser Daniel Thomas, who the network terminated on 20 September 2019 because he had not been following its advice processes correctly. 

First published by our sister title Professional Adviser