When Regulators Enable Fraud: The Case of Gary and the QROPS Trap

By Steve Conley, Academy of Life Planning

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What happens when you follow the rules—and the rules betray you?

Gary, a British retiree, entrusted his pension to a government-approved scheme. He acted in good faith. He relied on approvals issued by UK authorities. And yet, he lost everything.

His story is not unique. But it is devastatingly clear in what it reveals: a regulatory system designed to deflect, deny, and disappear when it matters most.

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A Scheme Approved by the State

Gary’s pension was transferred into a QROPS (Qualifying Recognised Overseas Pension Scheme) tied to entities operating out of Gibraltar and Slovakia. He was told it was safe. That it was registered with HMRC. That it had FCA approval to operate in the UK under EU passporting rules. That it was “London-based.”

Every one of these assurances was either misleading or outright false. But they came cloaked in the credibility of official oversight.

• The FCA had granted service passporting approval to a Slovakian firm linked to Cornhill Management, a company that falsely claimed UK ties.
• The HMRC had listed the QROPS on its official register—despite knowing of systemic issues with the scheme type dating back to 2011.
• The trustee, based in Gibraltar, transferred Gary’s funds abroad without his consent, and later went insolvent after a Gibraltar court confirmed fund mismanagement.

And when the fraud was exposed, not a single regulator stepped in.

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The Regulatory Circle of Denial

Gary’s attempts to seek redress have exposed a Kafkaesque cycle of responsibility avoidance:

• FCA: “Contact the Slovakian regulator.”
• Slovakian authorities: “No response unless complaint made in person.”
• HMRC: “We only handle tax matters.”
• FSCS and FOS: “Outside our jurisdiction.”
• TPR and DWP: “Not our remit.”
• Gibraltar authorities: “We don’t follow UK rules.”

No authority will investigate. No one will acknowledge oversight. No agency will accept accountability for the approvals they gave or the schemes they licensed.

Even the Financial Ombudsman Service—citing Section 172 of the Companies Act—claims it must weigh the interests of regulated firms (who fund its operations) before victims. That’s not consumer protection; that’s a conflict of interest monetised.

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The Post-Brexit Cover

To make matters worse, the fraud occurred during the chaos of Brexit. Regulators point to new “supervised run-off” rules introduced post-Brexit as if they absolve historic neglect. But Gary’s funds disappeared before the UK left the EU. The FCA had oversight then—and failed.

Gary has since submitted a Data Subject Access Request (DSAR) to the FCA, asking for internal documentation related to the firms involved. The response? A flat refusal to engage further.

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A National Disgrace in Plain Sight

This is not a story about financial naivety. It’s a story about institutional failure—of systems that approved rogue actors and now turn their backs on those harmed.

It’s about public authorities enabling private profit, then pretending it wasn’t their fault.

It’s about British retirees losing their life savings, while regulators argue over whose job it was to care.

And it’s about Gary, who did nothing wrong—but has been punished as though he did.

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The Call for Accountability

We call on:

• The Treasury Select Committee to launch a public inquiry into FCA and HMRC’s role in enabling pension fraud through passporting and QROPS approvals.
• The Consumer Duty Alliance to treat cross-border regulatory neglect as a breach of fiduciary duty.
• The public to stand behind victims like Gary and demand an end to the impunity enjoyed by white-collar scammers hiding behind regulatory shields.

The billions stolen through these schemes haven’t disappeared—they’ve simply changed hands. And the watchdogs who slept through it all must answer for what they allowed.

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I do want to clarify a vital principle we uphold consistently in our work: we do not blame victims.

Our role is to ensure that victims of financial crime are treated as such—with empathy, dignity, and access to justice. These individuals were not simply making poor choices—they were systematically deceived, often under the guise of regulatory approval, professional status, or government-endorsed schemes. Many lacked the capacity or resources to verify what they were told. In some cases, even the authorities failed to detect the fraud in time.

Yes, education is important. But our priority must be ensuring that the blame lies squarely with the perpetrators—and with the systems that failed to stop them—not with the people who were manipulated.

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If you’ve been affected by QROPS or cross-border pension scams, please reach out. Together, we can demand truth, accountability, and justice.

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Your Money or Your Life

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By Steve Conley. Available on Amazon. Visit www.steve.conley.co.uk to find out more.