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Soaring SIPP claims have forced the Financial Services Compensation Scheme to increase its levy for 2020/21 by £87m to £635m. 

The Financial Services Compensation Scheme (FSCS) has received 733 claims against Berkeley Burke Sipp Administration Limited (BBSAL).
The FCA has started proceedings against Park First Limited, its senior managers, including its chief executive officer and a number of other companies connected to the Park First group. 

The Financial Services Compensation Scheme (FSCS) is now open to claims against Berkeley Burke SIPP Administration Limited (BBSAL).

Scottish Widows has been ordered to compensate a client after a rule change around overseas pension transfers led to him being hit by an unnecessary 25% per cent tax charge.

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 Financial Services Compensation Scheme (FSCS) paid a total of £473m in compensation to 425,760 customers of failed firms during 2018/19, it has been revealed.
The Financial Services Compensation Scheme (FSCS) is now accepting claims against GPC SIPP Limited (GPC) which slumped into administration this week.
The Chartered Institute for Securities & Investment (CISI) has raised concerns with the FCA at the decision to increase the Financial Ombudsman Service’s (FOS) compensation limit from £150,000 to £350,000, as it may have “serious unintended consequences for its member SMEs”.
The FSCS has appointed eight law firms to form its second legal panel, following what it called “a rigorous six-month procurement exercise.”
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