As of the 14th of November 2016, PCS is now in administration. Did you invest as part of your pension?
Premier Children Services | In Administration
Could YOU be due compensation?
The supposedly SIPP-Friendly social care investment, Premier Children Services - often called PCS - has now gone into administration as of the 14th of November 2016.
Premier Children Services described itself as an exciting new social care service with desires to become an innovate market leader in the world of children's social care, and sought investments through what is known as a "Loan Note" for either 3 or 5 years, in return for some healthy looking returns:
Example 1. £0-99,000 Investment: 3 years = 8% Interest 5 years = 9% Interest
Example 2. £100,000 + Investment: 3 years = 9% Interest 5 years = 10% Interest
Rates like those could be seen as VERY attractive to investors, especially over the last 10 years and to those who sadly don't understand the risks those sort of rates tend to come with, and it's no wonder so many were persuaded to invest their pensions via a Self-Invested Personal Pension (SIPP) or Small Self-Administrated Scheme (SSAS).
But the bottom line has been revealed: However Premier Children Services was sold to you - it's now in administration, and those tasty returns are now in doubt.
So what next for investors? Well, some may be able to make a claim
Time To Make A Premier Childrens Services Claim?
Not sure how to start your Premier Children's Services investment claim? Our Free Initial Assessment lets you know if you're eligible to make a No Win - No Fee* claim...
- Parliament is set to debate the idea of BANNING cold-calling about pensions - the way many pensions are mis-sold as they are transferred into SIPPs
- The FSCS paid out £84m last year (March 2015 - 2016) in cases regarding bad Life and Pensions advice from financial advisers
- Get Claims Advice has claimed back over £Millions for it's clients regarding mis-sold pensions
Unregulated and High-Risk
If you invested in Premier Children Services, were you told what the investment was NOT regulated by the FCA and was a high-risk investment?
What this means is that if something goes wrong with the investment (which apparently it has), investors are NOT covered by the Financial Services Compensation Scheme (FSCS), or The Financial Ombudsman Service (FOS).
Because of the high-risk nature of investing in Premier Children Services, your financial adviser SHOULD have checked that you are:
A High Net Worth Individual Earning Over £100,000 per year or with £250,000 of investable assets.
A Sophisticated Investor, with plenty of experience and knowledge about investing.
Don't fit these descriptions?
You may have been mis-sold!
Premier Children's Services Information 101
It's important to know the basics about your investment so to understand what went wrong and why you should make a claim!
Premier Children's Services Limited was formed back in May 2012 in Cheshire.
Not operating any sort of "business" itself, Premier Children's Services is a holding company for two firms:
Unique Care Homes Limited
Sussex Fostery & Children's Services Limited
Both firms provide care for vulnerable children, and regardless of what seems to have happened to Premier Children Services, fortunately both firms are apparently still trading (there is SOME good news in all this!)
Money was raised in the form of loan-notes, eventually raising about £6.7m, some of which came from SIPP investments (Around 220 according to information released by the Administrators).
But we now know that not all those SIPP investors were suitable for such a high-risk investment...
Premier Children's Services goes into administration
In November 2016, at least some of the 220 SIPP investors in PCS received a pretty harrowing letter...
At Get Claims Advice, it's our job to be in-the-know when it comes to unregulated investments like Premier Children Services. While we can't knock the idea of helping vulnerable children, we do get annoyed when high-risk investments are mis-sold to members of the public who are NOT suitable for them.
Because we have our eyes on the industry, we've come across a letter written by a SIPP provider to clients with Premier Children Services investments, which states:
"Please be aware that, given the circumstances, no further payments are now expected from PCS.
Therefore, if you were anticipating any sort of capital or interest payment into your SIPP which has not been received by 15 November 2016, it is unlikely that this will be paid."
What this meant is that although not allowed to provide financial advice (only IFAs are allowed to do this), at least one Pension Provider believed that investors could no longer expect returns from Premier Child Services. The letter also featured the minutes from the companies Board Meeting when the decision was made to appoint Duff and Phelps as administrators of the business, which mentions the "financial difficulties of the company" and that "the company is or is likely to become unable to pay its debts" - not good news for investors still waiting for returns.
You can read the full document by downloading it HERE
Updates from the Administrator
Although the Administrators proposals sounded uplifting, the June Progress Report didn't...
January brought the publication of the Administrators Proposals - an outline of what had happened to Premier Childrens Services, and what they intended to do about it. Here's the highlights:
Premier Childrens Services had a "high level of debt"
The Company "experienced difficulty in meeting PCS's ongoing interest obligations" - payments to investors
"only £4.2m of the £6.7m was utilized in the acquisition and funding of the ongoing working capital of UCH and SFCS" - The administrator would investigate the rest
June 2017 brought the progress report:
Reffering to the proposal, the administrator was trying to find a way of "resucing the company as a going concern" (Keep it running). The progress report said that "this will not be achieved as there are insufficient funds and assets available to enable the company to be rescued as a going concern"
With "plan A" no-longer an option, a sale was sought. After two "unfeasible" bids, a sale was agreed for £1,150,000, BUT...
"At this stage, it is anticipated that there will be insufficient realisation [available money from processes] to repay the Security Trustee, and therefore the loan note holders [Investors] in full
Not good news for investors...
Making a claim for a mis-sold PCS investment
We know from experience just how it feels to have your hard-earned pension put at risk, or even have it disappear.
That's why we've dedicated our careers to challenging those who mis-sell unregulated and high-risk investments to people who are unsuitable for them. We're good at it too - with £MILLIONS recovered for our clients with winning SIPP Claims!
To find out find out if you can make a claim for your mis-sold Premier Children Services investment, just fill in the form and we'll get in touch as soon as we can.
Our initial assessments are simple and completely FREE. Nor are you under any obligation to continue your claim following your assessment, even if your pension mis-selling specialists believe you may have a case.
But for those who want to take the fight for their mis-sold pension investment through to the end, we can back your claim with our specialist experience and knowledge, all on a NO WIN - NO FEE Basis.*
With PCS now in administration - the help you need could be just a phone-call away!
Check to see if you can claim!
*No Win - No Fee: Your claim is pursued by Get Claims Advice on your behalf with no up-front fees. In the event of a successful claim, our success fee is charged at 24% inclusive of VAT, of any monies awarded. 14 Day “cooling-off” period, after which a cancellation fee is applicable. See Terms of Business for full details.
We've been dealing with Premier Children's Services Claims for some time, and some names keep popping up...