Ecroignard Trustees Limited was wound-up on Monday (2 September) after the Manchester High Court found it had mismanaged £14m worth of members’ savings across two pension schemes.

The Preston-based company was wound up following an investigation by the Insolvency Service, with the Official Receiver appointed as liquidator.

Ecroignard acted as the trustee of The Uniway Systems Retirement Benefits Scheme and the Genwick Retirement Benefits Scheme and was responsible for around 229 members with £14m worth of investments.

Commenting on the announcement, Insolvency Service chief investigator, Scott Crighton, stated: “When people invest their pension funds as a way of planning for their futures, they don’t expect their saving pots to be put at risk.

“Ecroignard’s management of the pension schemes, however, raised considerable red flags and questions remain which will need to be looked into by the Official Receiver as liquidator of the company.”

The Insolvency Services Investigation uncovered “numerous instances of misconduct”, including trading with a lack of commercial integrity and that pension funds were used to invest in vehicles that were illiquid, high-risk and not suitable for the members.

The trustee firm also failed to comply with legal requirements, best practice guidelines and internal governance requirements. It failed to ensure that the Uniway scheme was properly divested and did not seek assurances that savings were put into regulated investments.

Furthermore, members were not notified of changes to their investments or given the chance to choose how their funds should be invested in the future.

The investigation also found that the company had not adequately kept books and records, which resulted in investigators being unable to find out whether all investments were accounted for.

The Insolvency Service added that the firm “demonstrated a lack of transparency and adequate stewardship” since Roger Bessent resigned as director in April 2017.

Bessent’s replacement, Anthony Waterfield, was found to have insufficient knowledge of Ecroignard’s trading and the scheme’s valuations.

Additionally, Bessent appeared to continue having executive authority within the company, despite being disqualified from acting in the management of companies in November 2017.

He was jailed for three years in March 2019 after pleading guilty to multiple counts of fraud when a trustee and administrator at the Focusplay Retirement Benefit Scheme.

Crighton concluded: “If you are considering moving your pension into an investment scheme, we strongly recommend you do your research beforehand and if you believe you have been affected by Ecroignard to contact the Official Receiver as soon possible.”

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