Financial Conduct Authority  

FCA warns Sipp providers to own up to financial struggles

The functioning Sipp book was sold to Hartley Pensions in a pre-pack arrangement and any claimants directed towards the Financial Services Compensation Scheme for potential redress.

There are now concerns that the dropping of the appeal case will create a considerable burden on the FSCS.

A spokesperson for Berkeley Burke Group, which is now independent of the Sipp but has fundraised for the legal action, said: “Berkeley Burke Group decided to try and raise legal funds to allow for the administrators to continue with the appeal to the Court of Appeal, after unprecedented support from independent FCA regulated firms unconnected with the litigation who wanted to see the appeal go ahead.

"It is thought that a successful appeal at the Court of Appeal may have mitigated the need for the FSCS to make pay-outs in relation to the company in administration.

"That the appeal will not now be heard despite being listed, is therefore of considerable regret to many FCA-regulated firms across the savings and investment industry, in particular but not limited to those operating execution-only services, among whom those who in addition gave their individual financial backing and support to enable the Court of Appeal process to continue after BBSAL entered administration."

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