By Steve Conley
Founder, Academy of Life Planning
29 May 2025
“It’s surprising that a firm embroiled in legacy QROPS servicing under a now-absconded fraudster is being allowed to scale without apparent accountability or public regulatory comment.”
That may be an understatement.
This week, Mattioli Woods announced its merger with Kingswood Group, creating a £25 billion financial planning giant—hailed as a transformative move in the UK wealth sector. But behind the glossy headlines and “client-first” branding lies a troubling silence that deserves urgent public attention.
Why? Because one of the firms at the heart of this merger—Mattioli Woods Group—previously contracted a subsidiary to service QROPS pension schemes connected to the now-absconded adviser John Maurice Pye, who is at the centre of multiple fraud, money laundering, and tax evasion allegations.
Under oath before the Maltese Financial Services Tribunal, a former CEO of the affected QROPS trustee admitted that 60 to 70 members had been advised by Mr. Pye, with estimated losses running into the millions. These aren’t vague claims—they are on public record, with supporting litigation still active in Malta.
And yet, no mention of this legacy risk has been made in the regulatory commentary or media coverage of the merger. There is no evidence that the Financial Conduct Authority (FCA)—tasked with protecting consumers and ensuring market integrity—has intervened, investigated, or even acknowledged these issues in the context of merger approval.
The Mattioli Woods Link to the QROPS Scandal
Mattioli Woods plc, now poised to become one of the UK’s largest wealth management firms through its merger with Kingswood Group, has historical links to one of the most serious pension mis-selling scandals of the past decade—one that continues to leave victims uncompensated and regulators silent.
From May 2010 to December 2017, a subsidiary of Mattioli Woods was contracted to provide administrative services to MC Trustees Malta Limited, the trustee of a Malta-based Qualifying Recognised Overseas Pension Scheme (QROPS). This scheme, recognised by HMRC and regulated by the Malta Financial Services Authority (MFSA), became a vehicle through which numerous UK citizens were mis-sold offshore pensions on the advice of now-absconded financial adviser John Maurice Pye.
The subsidiary of Mattioli Woods plc that provided administrative services to the Malta-based QROPS scheme MC Trustees Malta Limited was MC Trustees Administration Limited (MCTAL).
This UK-registered entity acted as the administrative services provider for MC Trustees Malta from May 2010 to 31 December 2017. It is cited in ongoing litigation related to the QROPS mis-selling scandal, particularly involving the now-absconded unregulated adviser John Maurice Pye.
In sworn testimony before the Malta Financial Services Tribunal, the former CEO of MC Trustees Malta admitted that between 60 and 70 scheme members had been advised by Pye. These members were persuaded to transfer their UK pension savings into the QROPS and subsequently invest in high-risk or fraudulent funds—including the Axiom Legal Financing Fund, which has since been exposed as a fraud by UK authorities and led to multiple convictions by the Serious Fraud Office.
During the period when these transfers and investments occurred, Mattioli Woods’ subsidiary was responsible for the administrative servicing of the QROPS. Although not a financial adviser itself, its role in maintaining the infrastructure through which these schemes were operated has brought it into the scope of ongoing litigation in Malta. Claimants argue that administrators and trustees, by virtue of their roles, had a duty of care to detect and prevent the abuses that occurred, particularly when advisers lacked professional indemnity insurance and regulatory authorisation.
Despite this involvement, there has been no public comment from the Financial Conduct Authority (FCA) regarding Mattioli Woods’ historic connection to these events. Nor has there been any indication that this legacy risk has been considered as part of the regulatory scrutiny surrounding the firm’s proposed merger with Kingswood.
This silence underscores a broader failure of accountability. It raises serious questions about the effectiveness of cross-border cooperation, particularly the Memoranda of Understanding (MoUs) between UK, Maltese, and Isle of Man regulators. These frameworks, ostensibly designed to ensure regulatory coordination, appear to have failed victims when it mattered most.
As Mattioli Woods prepares to scale its operations significantly, the absence of regulatory inquiry into its past associations with QROPS misselling raises profound concerns. It suggests a pattern in which commercial consolidation proceeds unchecked, while past misconduct—no matter how serious—remains unexamined and unresolved.
The Bigger Picture: MoUs Without Teeth
Mattioli Woods isn’t the only firm to have benefited from cross-border regulatory blind spots. The UK, Malta, and the Isle of Man have all signed Memoranda of Understanding (MoUs) designed to coordinate enforcement and oversight. But in practice, these agreements appear to serve as window dressing—offering no real protection when consumers are harmed by rogue actors operating across jurisdictions.
Despite multiple credible warnings, no regulator has yet moved to:
- Investigate how unregulated advisers obtained Terms of Business from regulated insurers;
- Explain how QROPS policies sold through such networks remained compliant with HMRC rules;
- Or disclose how such firms passed “fit and proper” criteria to continue scaling.
The silence is telling. And the victims? Left to battle legal systems, tribunals, and indifferent regulators—alone.
Why This Matters
Allowing a firm with unresolved legacy issues to absorb another and grow into a market-dominating institution without inquiry sets a dangerous precedent. It sends a message that scale trumps scrutiny, and that consumer harm—no matter how severe or widespread—can be swept under the rug in the name of “progress.”
This is how scandals are allowed to grow in plain sight.
What Needs to Happen Now
The Academy of Life Planning calls for:
- Full transparency from the FCA regarding any prior regulatory findings involving Mattioli Woods’ role in legacy QROPS servicing;
- Immediate review of merger approval processes to ensure legacy liabilities are considered before authorising consolidation;
- A parliamentary inquiry into regulatory failures related to cross-border pension fraud and the real-world effectiveness of MoUs;
- And a compensation mechanism for those who continue to suffer the consequences of systemic inaction.
Final Word
In the wake of the Post Office Horizon scandal, the public has grown weary of institutions that hide behind technicalities while real people lose their savings, their health, and sometimes their lives.
This isn’t just a story about mergers. It’s a story about what happens when watchdogs don’t bark—and why we must all stay alert to the growing pattern of financial injustice dressed as corporate evolution.
The Academy will continue to push for truth, transparency, and accountability. Because financial planning, at its best, is about protecting people—not just profits.
About Get SAFE
Get SAFE (Support After Financial Exploitation) was born from a simple truth: too many victims of financial abuse are left to suffer in silence.
We exist in memory of Ian Davis—for the ones who did everything right, only to be failed by the systems they trusted. We know that behind every vanished pension, every ignored complaint, and every stonewalled letter is a person—frightened, exhausted, and too often alone.
Get SAFE offers more than sympathy. We offer structure, support, and solidarity.
We provide a voice where there’s been silence, and clarity where there’s been confusion.
We stand beside those who have been exploited, not just to help them recover—but to help them reclaim their story and rebuild their future.
Because financial justice is not a luxury.
It’s a human right.
If you or someone you know has been affected by financial exploitation, we are here.
You are not alone.
Learn more at: Get SAFE (Support After Financial Exploitation).
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