More than 60 people who transferred over £10m from occupational pensions into “inappropriate” Qualifying Recognised Overseas Pension Scheme (QROPS) investment funds have won a High Court appeal to have their case heard in the UK.

The 62 investors from the UK claim that they received negligent financial advice in 2014 and transferred more than £10m from defined benefit (DB) pension schemes to QROPS investment funds administered by Castle Trust Management Services.

Represented by High Street Solicitors, the investors were initially unable to sue Castle Trust Management Services, a QROPS administrator based in Gibraltar, after a High Court ruling in 2021 that deemed the Courts of England and Wales did not have jurisdiction to deal with the complaints.

However, following an appeal in October 2022, the decision was overturned in November 2022.

While the total loss is still to be determined by an actuary, the minimum losses were £10,215,289, which is the total amount transferred from DB schemes into the QROPS.

Castle Trust Management Services has until 25 January 2023 to file its defence.

High Street Solicitors said that, in 2014, the investors received negligent financial advice from Montegue Smythe, which was not authorised by the Financial Conduct Authority to give financial advice on investments, pensions, and pension transfers.

It added that once the transfers were made, the investors were advised to invest in unregulated collective investment funds, which the claim stated were highly speculative, illiquid investment schemes that carried a “significant risk of loss”.

The unregulated schemes included Aspiro/Snowdrop Research Ltd/Crocus Research Ltd, Disruptive Technology Ltd/Techbranch Bahamas Ltd, Consilium Property Fund (including the Solum sub-fund), Energy 10 Finance Ltd, Prometheus Loan/Prometheus Group FZE, Protected Capital Property Fund, later re-named British Land and Property Fund, and The Elysian green energy schemes comprised various Elysian Fuels PLCs and Elysian Fuels LLPs.

“This is an incredibly significant development in this case, and we’re delighted that the High Court has accepted our appeal and we can now move forward as planned with the case in the Courts of England and Wales,” said High Street Solicitors director, Sarah Kearney.

“We’re determined to hold these companies to account on behalf of our 62 claimants who deserve to be compensated for the losses of their pensions that they’d worked hard for for many years, as well as the loss of the potential interest that could’ve been made had they been invested into suitable pension schemes.”

Castle Trust Management Services has been contacted by Pensions Age for comment.

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