Welsh advice firm enters administration after raft of SIPP complaints

Hannah Godfrey reports...

Adviser firm Economic Financial Solutions, which traded as Torch Wealth Management, has entered administration.

According to an update on the Financial Services Compensation Scheme (FSCS) website, the firm failed on Wednesday 8 January.

The FSCS told PA it had not paid out any compensation for Torch Wealth Management yet.

Torch Wealth Management began being wound-up on 7 November 2019 and is being handled by administrator firm Sanderling.

The firm, which was based in Caerphilly, Wales, fell into administration following several complaints against it made to the Financial Ombudsman Service.

The complaints generally centred on an individual transferring their pension to a self-invested personal pension (SIPP), which was then used to invest in a way they felt was too risky or inappropriate for them.

At the time of writing, there were 14 complaints upheld against the firm on the FOS website.