The Financial Services Compensation Scheme has opened the door to claims against a SIPP firm which was dissolved more than 10 years ago.
The FSCS says it is now accepting claims again North Star SIPP LLP which was dissolved on 9 June 2009.
In January 2018, the FSCS declared three SIPP operators, Brooklands Trustees Ltd, Stadia Trustees Ltd and Montpelier Pension Administration Services Ltd in default. Since then FSCS has received a number of claims against these and other SIPP operators, it says.
The compensation body says it is aware that SIPP operator due diligence has been an industry ‘hot topic’ in recent years and FSCS is aware that there are a number of pending civil claims in the High Court against various SIPP operators in respect of alleged due diligence failings.
The FSCS anticipates that claims submitted against North Star will relate to the SIPP operator's due diligence obligations in allowing customers to make specific investments under their pensions.
In a statement the FSCS said: “We're aware that North Star customers may have been advised by independent financial advisers to transfer existing pensions into a North Star SIPP. Following the pension transfer, customers had their pension funds placed in high risk, non-standard investments, many of which have become illiquid.”
The FSCS says it has has already assessed and paid a number of claims made against IFAs already declared in default by the FSCS in relation to advice customers received to transfer their pension into a North Star SIPP.
The joint administrators of GPC SIPP have concluded the sale of the business to Hartley Pensions following a period of marketing.
The deal, which was completed on Monday, included the effective transfer of the SIPPs and SSASs held via the trustee company, Guardian Pension Trustees Limited.
Adam Stephens and Henry Shinners of Smith & Williamson LLP were appointed as joint administrators of GPC on June 11.
Hartley is an established SSAS provider with over 35 years’ experience in the financial services industry, opening its first SIPP in 2001.
It is part of the Wilton Group and manages more than £1 billion of clients’ assets.
Adam Stephens, lead administrator, said: “We are pleased to confirm the sale of the business to Hartley, which will provide continuity of service to GPC’s clients.
“We recognise that the insolvency of GPC may have been unsettling to clients”.
Weightmans LLP acted as legal advisers to the joint administrators on the sale.
James Moore, restructuring and insolvency partner at Weightmans LLP, led the team along with Natasha Atkinson (R&I Partner) and pensions partner Mark Poulston.
The joint administrators confirmed that all staff will transfer across to Hartley, which, they said, should assist in ensuring that clients will experience minimum disruption in the transfer process.
The joint administrators and Hartley “do not anticipate that there will be any interruption to the services previously provided by GPC”.
GPC specialised in the provision of technical and administration services to Guardian Pension Trustees Limited which acted as the corporate trustee of SIPPs and SASSs.
It administered around 3,200 SIPPs and 50 SSASs, holding over 8,000 property assets, and a total investment value of around £130m.
The joint administrators said clients will be contacted “in the coming days” with information about their pensions.
It was good to see the Guidance Consultation from the FCA on the fair treatment of vulnerable clients that has recently been published.