Tech & Tonic: High Court burns fund, pension havoc and charity bid

When in doubt, splash the cash! Rogue fund spends over £2m on expenses and retail  (image by freestocks.org)

When in doubt, splash the cash! Rogue fund spends over £2m on expenses and retail (image by freestocks.org)

News story of the week: Rogue fund goes to the High Court

Investors were burned by an “Unauthorised firm” who collected £15m before being ordered by the High Court to return £3.4m to some 1,000 people. Professional Adviser named and shamed Samuel and Shantelle Golding of Digital Wealth Ltd and Outsourcing Express Ltd, in its report on the ruling.

The FCA accused the Goldings of offering “unrealistically high returns”, however out of the £15m invested, the pair returned £9.25m before being ordered to hand back the further £3.4m for re-distribution to investors.

The £2.7m spent on “expenses on travel, hotels and retail goods” has not been recovered as yet. We wonder if the FCA have searched for ‘Shantelle Golding’ on Instagram for clues - no one spends that much without taking photos of it anymore, after all.

Comment piece of the week: ‘Safe’ pensions cause havoc for retirees

Once considered the holy grail of career security and the Mecca of solid pension pots, Civil Service jobs are now at an all-time low in the desirability stakes for professionals and graduates alike, after the latest disappointment suffered by “highly paid public sector employees facing tax bills because of their pension contributions”.

FT Adviser’s Damian Fantato commented on the debacle earlier this week. Fantato described the chaotic knock-on effect on the NHS, which has seen doctors choosing to retire early or jump to the private sector, in a bid to avoid the decimation of their retirement fund; as well as the difficulty faced by financial advisers who try to promote retirement planning as essential to non-believers, in the face of this bad press.

Number of the week: £18,000

The good folks at Citywire brought together what must be London’s fittest and finest financiers, for their annual charity run on Wednesday. On the day, they were happy to report that they had received donations of almost £18,000, which will be shared among the Alzheimer's Society and Macmillan Cancer Support. To chip in and help them reach their £25,000 target, visit their giving page.

Tweet of the week: