FSCS receives 600 claims against two Sipp firms

FSCS receives 600 claims against two Sipp firms

The Financial Services Compensation Scheme (FSCS) has received a total of 662 claims against self-invested personal pension (Sipp) firms Lifetime Sipp and CPPT Services Limited.

The lifeboat scheme told FTAdviser it has received approximately 500 claims against Lifetime Sipp, with one claim of £85,000 having been paid. No claims have yet been rejected.

Regarding CPPT Services, which operated the CTTP Sipp, the FSCS has received 162 claims, 159 of which are in progress and three have been rejected. No claims have yet been upheld or paid.

The FSCS said it was too early to determine which group of levy payers the financial burden would fall on, however FTAdviser understands that the lifeboat believes these claims will most likely be levied against the investment provision funding class.

The claims against the two Sipp firms were mainly related to Sipps, pension transfers and pension advice, the FSCS stated.

The lifeboat announced yesterday (July 31) that it is finalising processing claims against CPPT and those already submitted against the firm will be passed to its claims processing teams for assessment.   

Claims made against the Lifetime Sipp are also now being assessed.

Lifetime Sipp appointed administrators Kingston Smith & Partners at the end of March 2018 to try and salvage the firm after receiving claims from unhappy investors. 

At the time of administration, lawyers representing claimants warned the FSCS, which is funded by the industry, could be hit with as much as £3.5m in claims related to Lifetime Sipp.

The firm later went into liquidation on April 2, 2019.

FTAdviser learned the troubled Sipp firm had started to transfer 40 per cent of its Sipp book to Hartley Pensions in January, ahead of going into administration.

Hartley Pensions was established and approved as a pensions operator under the Wilton Group in late 2016. An agreement had already been signed in 2015 to acquire certain assets of the Lifetime Sipp.

CPPT Services entered a company voluntary arrangement in August 2017.

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