“Providers should be in charge of what they are selling and not work on 'Caveat Emptor' where the onus is completely on the buyer.”
Advisers believe the Sipp industry has been unfairly tarnished by a small number of problem cases and although they are largely confident the Sipp product will survive these testing times, they do expect the market as a whole to shrink.
Three-quarters think the number of Sipp providers will decrease over the next few years, compared with 4 per cent who predict an increase.
Only last week (September 18), Sipp provider Berkeley Burke went into administration and its client book was bought by Hartley Pensions.
This was after it was unable to cover the financial costs of defending claims made against it in respect of the firm's alleged due diligence failings when accepting high risk investments.
Hartley has snapped up a number of failing Sipp firms' client books in recent years.
Last month it bought the £130m client book of GPC Sipp, which entered into administration earlier this year after it was embroiled in hundreds of customer claims, and in October 2018 it bought Greyfriars Asset Management's Sipp business for £820,000 after the firm entered insolvency.
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