Court sides with i-Select

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Advice firm Saturn Portfolio Management has lost its fight against a superannuation scheme provider’s move, which it says has cost it clients.

Thursday, August 17th 2017, 11:00AM 1 Comment

by Susan Edmunds

Saturn had an arrangement with i-Select that allowed it to transfer UK pensions to New Zealand. It was one of about 50 authorised providers.

But i-Select terminated the contract.

Saturn says that led to 60%, or about 100, of its clients leaving. It went to court arguing for an interim injunction, claiming a risk of further client losses.

Saturn was also suing GBPensions, and former Saturn adviser Lester Luey and his new company, of which GBPensions is a shareholder.

It said i-Select was showing preference to GBPensions and alleged a conspiracy against it.

i-Select’s lawyer said Saturn had promoted its own scheme and said her firm was entitled to cancel the contract.  She said the claim that there was a conspiracy against Saturn was strongly denied.

The court ruled i-Select was within its rights to cancel the contract.

Saturn director Lisa Dudson was disappointed by the result.

"Saturn Portfolio has gone into battle for its clients to seek to allow clients to remain with their scheme manager, i-Select and continue to be advised by Saturn Portfolio," she said.

"The court found that i-Select's contract meant it could terminate that relationship without cause by giving 90 days' notice and didn't need to act in good faith in doing so.

"The court referred to the fact that Saturn Portfolio's clients can transfer to a new scheme manager without incurring a fee, which is good news for clients.  

"Clients will now have the choice of continuing to retain Saturn Portfolio with a new scheme manager.  Saturn Portfolio has kept informed the Financial Markets Authority throughout referring to their conduct guidance notes. "

Tags: Saturn superannuation

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