How Justice Is Bought and Buried: The Scandal Behind Unpaid Compensation and Silent Acquisitions

By Steve Conley, Founder of the Academy of Life Planning & Ambassador of the Transparency Task Force

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What happens when a financial firm mistreats its clients, loses a complaint at the Financial Ombudsman Service (FOS), and is ordered to pay redress?

Simple: they pay up and fix the harm. Right?

Wrong.

In today’s UK financial landscape, firms with unresolved liabilities are being quietly acquired—with full regulatory approval—before victims see a single penny. And instead of regulators holding them to account, they’re waving these transactions through. The result? Justice is delayed, denied, or conveniently forgotten.

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⚠️ The Scam You Were Never Meant to See

Here’s how it works:

1. A financial firm mis-sells, mishandles, or outright defrauds clients.
2. Victims complain to the FOS. The FOS upholds the complaint.
3. But before paying redress, the firm is sold or merged—acquiring a new name, new owners, and no intention of honouring its liabilities.
4. The Financial Conduct Authority (FCA) approves the takeover.
5. The redress order disappears into the ether. No enforcement. No prosecution. No compensation.

This isn’t theoretical. It’s happening across the country—particularly in pensions, investments, and property sectors. Victims of failed schemes like Hartley Pensions, Wilton Group, and others are living proof.

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🧱 The System That Lets It Happen

Each regulator plays its part in doing nothing:

💼 The FCA

Instead of blocking suspicious takeovers, the FCA facilitates them—approving change-of-control applications without ensuring victims are paid first.

🧑‍⚖️ The FOS

The FOS has no enforcement powers. It upholds complaints, then stands back when redress goes unpaid. Victims are told it’s “not their responsibility.”

💸 HMRC

Even as billions in tax relief are lost to pension fraud, HMRC keeps registering new schemes. It may even fund distressed firms through deferred payments or tax write-offs.

⚖️ The Insolvency System

By structuring deals to avoid formal insolvency, firms skip independent scrutiny. Insolvency Practitioners are never called in. Evidence is buried. Oversight is lost.

👥 Professional Bodies

Bodies like ICAEW and R3 regulate insolvency practitioners, not acquisitions. So if no formal insolvency occurs, they wash their hands.

🚫 The SFO & Police

Even when fraud exceeds the £10,000 SFO threshold, most cases aren’t investigated. Complex economic crime? “Not a priority.”

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🔁 The Revolving Door Problem

Some former FOS leaders and legal insiders now sit as directors in firms still dodging FOS decisions. Conflicts of interest abound. Consumer protection? It’s become a business strategy.

Meanwhile, complainants—ordinary citizens who’ve lost life savings—are labelled “persistent” or “challenging” and quietly shut down under internal policies that some claim were developed ultra vires.

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💥 What It Means for You

If you’ve ever trusted a regulated firm with your money, know this:

• You are not protected by default.
• Your complaint may be upheld—but never acted upon.
• The law won’t chase them.
• You will be told to chase the shell of a company that no longer exists.

This is not consumer protection. It is consumer deception.

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🛑 Enough is Enough

We need change—real, structural change.

🔧 What We’re Calling For:

1. A Statutory Redress Enforcement Agency
   With powers to enforce FOS decisions, block acquisitions, and recover unpaid compensation before any corporate restructuring.
2. A Public Register of Unpaid FOS Awards
   So acquiring firms can’t dodge accountability.
3. Reform of Section 172 of the Companies Act
   Directors must owe duties to all stakeholders—especially victims—not just shareholders. [see Footnote].
4. Criminal Oversight of Acquisition Abuse
   The SFO must treat asset transfers designed to avoid liability as fraud.
5. An Independent Inquiry
   Into the regulatory architecture that enabled this culture of avoidance.

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🤝 Join the Movement

If you’re a victim, a planner, a policymaker, or simply a concerned citizen—this matters.

The Academy of Life Planning and Transparency Task Force are working alongside victims and campaigners to expose the rot, champion transparency, and design a fairer system.

Because financial planning should be about building futures, not covering tracks.

Let’s make sure those responsible are finally held to account.

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Footnote:
The “enlightened shareholder value” (ESV) model, embedded in Section 172 of the Companies Act 2006, requires directors to act in the best interests of shareholders while also having regard to broader stakeholder considerations—such as employees, suppliers, the environment, and the long-term impact of decisions. Unlike stakeholder models found in some European jurisdictions, ESV prioritises shareholder value but encourages sustainable, ethical business conduct by making stakeholder interests part of directors’ decision-making process. However, these broader duties are not enforceable by non-shareholders, limiting practical accountability.

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Contact us. Share your story. And help us build a system that works—for everyone.

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Your Money or Your Life

Unmask the highway robbers – Enjoy wealth in every area of your life!

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