A paraplanner firm, Heather Dunne Consulting, has faced liquidation following restrictions imposed on its pension transfer permissions. Founded by adviser Heather Dunne in 2002 to assist advisers in pension transfers, the firm’s major client, HDIFA, managed by Dunne, was voluntarily suspended in July 2017 after an FCA inspection. Although HDIFA was reinstated in March 2018 with revised processes, it struggled to secure an arrangement with its principal firm, Financial Solutions Midhurst, leading to a year-long cessation of trading.

The situation worsened when Financial Solutions Midhurst deregistered HDIFA in June, exacerbating the decline in transfer business coupled with escalating compliance costs. Consequently, Heather Dunne made the difficult decision to place Heather Dunne Consulting into voluntary liquidation, appointing a liquidator on September 4. Subsequently, Dunne established Pensions Experts to operate from her residence, focusing on paraplanning, TVAS reports, and pensions.

Dunne highlighted that the loss of permissions prevented the advancement of employees, resulting in several redundancies and departures. She emphasized the necessity of finding a new principal to continue pension transfer operations, citing the prohibitive costs associated with direct authorization.

The challenges faced by Heather Dunne Consulting underscore the complexities and financial strains prevalent in the paraplanning sector. The intricacies of regulatory compliance and the reliance on principal firms for operational viability pose significant hurdles for firms like Heather Dunne Consulting. The case also sheds light on the ripple effects of regulatory actions on businesses within the financial services industry, emphasizing the need for robust risk management and strategic planning to navigate such turbulent waters.

In the aftermath of the liquidation, the establishment of Pensions Experts signifies a new chapter for Heather Dunne, showcasing resilience and adaptability in the face of adversity. The transition to a home-based operation reflects a pragmatic approach to restructuring and aligning business strategies with the evolving regulatory landscape.

The plight of Heather Dunne Consulting serves as a cautionary tale for paraplanner firms, highlighting the importance of diversification, contingency planning, and proactive engagement with regulatory requirements. As the financial services industry continues to witness regulatory shifts and increased scrutiny, firms must remain agile and responsive to safeguard their long-term sustainability and operational continuity.