TPO publishes Ecroignard Determination
An investigation conducted by our Pensions Dishonesty Unit (PDU) into Ecroignard Trustees Ltd (Ecroignard), the appointed trustees of the Uniway Systems Limited Retirement Benefit Scheme and the Genwick Limited Retirement Benefit Scheme (the Schemes), has resulted in a direction that Mr Ankur Vijaykumar Shroff, a former director of Ecroignard, should personally repay over £9.7m into the Schemes. The Deputy Ombudsman ultimately found that the Schemes were established with the primary intention of channelling money into specific, predetermined investments. By facilitating this arrangement, Ecroignard and Mr Shroff had failed to invest the Schemes’ funds for a proper purpose and Mr Schroff was found to be a dishonest accessory to multiple breaches of trust.
Mr Shroff was an experienced investment and asset manager with over 10 years' experience at a UK authorised firm. In his capacity as sole director of Ecroignard, Mr Shroff invested £13.5m of the Schemes’ funds into high risk, overseas investments. The complex and extensive investigation conducted by the PDU uncovered that there was a network of regulated and unregulated introducers arranging transfers into the Schemes. There were significant conflicts of interest as the individuals that set up the Schemes and introduced individuals to the Schemes had direct economic interests in the eventual investments.
The complaints were raised with The Pensions Ombudsman (TPO) as some Scheme members had become concerned about a lack of information around investment performance, and an inability to take benefits from the Schemes or transfer their funds. The complaints we received triggered the investigation by the PDU due to the nature of the investments and a lack of clarity from the Schemes’ administrators.
The Deputy Ombudsman has directed £9,776,035.99 to be repaid into the Schemes for the benefit of all members and to pay each Applicant £5,000 in recognition of the exceptional distress and inconvenience each has suffered.
The Applicants and Respondents have been notified of the Determination, which is final and binding, subject to appeal to the High Court on a point of law. Information obtained during the investigation has been passed on to The Pensions Regulator (TPR) and the Fraud Compensation Fund.
The case highlights the importance of pension scheme members being cautious when transferring their pensions and being aware of the risks of pension scams and dishonest behaviour.
TPO is a member of the Pensions Scams Action Group a multi-agency taskforce working together to tackle pension fraud. Action Fraud reports that at least £17.7m was lost in 2023 to pension fraudsters and highlights pensions scams can happen to anyone. The Financial Conduct Authority provides more information on being ScamSmart with your pension.
If you are worried that you may have been a victim of fraudulent activity:
- For example, a potential scam, or you think you may have been contacted by a fraudster, report it to Action Fraud online at actionfraud.police.uk or by calling 0300 123 2040. In Scotland, report it to Police Scotland on 101.
- Read our factsheet on how you can bring a complaint to us.
If you are a member of either of the Schemes affected in this Determination:
- Contact the Schemes’ Independent Trustee, Dalriada Trustees Limited (appointed by TPR) for information on next steps.
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