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FSCS starts accepting claims against Sipp provider

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.

Last month, GPC Sipp, formerly known as Guardian Pension Consultants, went into administration.

GPC became insolvent because it had about 2,700 self invested personal pensions holding alternative investments, several of which failed, such as Harlequin Properties, a luxury hotel development that was only partly built.

The assets in these Sipps were placed between 2009 and 2012. And in light of problems with these investments the company has not marketed its services since 2013, according to the administrators.

Last month, FTAdviser revealed the Financial Ombudsman Service has about 500 cases involving GPC Sipp, with many of these complaints relating to the investment of pension funds in unregulated schemes which subsequently failed.

The financial loss is expected to be considerable but an actual value has not yet been estimated.

It was also revealed that the Financial Services Compensation Scheme has paid £95m in compensation to GPC Sipp clients.

Meanwhile last month the FSCS also declared The Lifetime Sipp Company in default, opening the floodgates for claims.

The Lifetime Sipp went into liquidation in April, after receiving claims from a number of unhappy investors with assets the likes of failed property scheme Harlequin.


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