Displaying items by tag: compensation

The FSCS is working through nearly 1,000 potential claims against SIPP operator Guinness Mahon which collapsed in February.

The FSCS yesterday (1 April) declared Berkeley Burke SIPP Administration Ltd a failed firm and opened the door to claims that could eventually top £150m.

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) is now open to claims against Berkeley Burke SIPP Administration Limited (BBSAL).

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.