SIPPFeb 19 2020

Carey Pensions' Hallett: We are 'ready to move on'

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Carey Pensions' Hallett: We are 'ready to move on'

Carey Pensions is a name that needs to be left in the past as the provider looks to its future under a new brand, its managing director has said.

Speaking to FTAdviser, Christine Hallett said the problems associated with Carey Pensions regarding the level of due diligence on investments in its self-invested personal pension were in the past, and it was important to move on.

Carey Pensions was acquired by STM Group in October 2018 and now goes by the name Options Pensions following a rebrand this month.

However, the Sipp provider is still awaiting the outcome of the Adams v Carey Pensions High Court case, which centres on the issue of due diligence by Sipp operators after the trial was concluded in March 2018.

This case which centred on the question of provider responsibility when accepting investments into a Sipp will have implications on the rest of the Sipp market.

Ms Hallett said she was none the wiser as to the outcome of this case but was not worried about the reputation it may bring to the new brand.

She said the case was “unfortunate” but even more so that other Sipp providers had to close their doors due to similar issues.

Ms Hallett said: “We are not worried at all that the ongoing court case may bring a reputation. 

“We have got adequate professional indemnity insurance so are fortunately not in the same position as other Sipp providers who had to close due to similar claims.

“It has been a great disservice to the industry and although I am not saying that there were some companies that did things they shouldn’t have, there were other companies that truly had a robust due diligence process which was followed. But unfortunately every provider was put under the same umbrella.”

At the time of acquisition, parent company STM acknowledged the ongoing legal dispute, saying it had “secured indemnities and the benefit of significant existing [professional indemnity] cover from the sellers and considers any residual exposure to this, and any other historic industry, issues to be minimal”.

But Ms Hallett said she was not willing to wait for the outcome of the case before moving on with the new brand.

She said: “On March 12 the case will have been ongoing for two years and we cannot afford to wait another two years before we move forward.

"We want to think forward as opposed to keep reflecting on the past. We knew there would never be the right time to launch the new brand but we are determined for 2020 to make it a year of fresh solutions and to provide something which is robust and needed in the marketplace.”

Ms Hallett said she was aware that people will still want to tie the bad issues with the new brand but she was hopeful that people will give them the opportunity to add value to the marketplace.

She said: “We want to create opportunities for people who need independent solutions or else all we will have is vanilla flavoured retirements.”

She went on to say that the industry needs a firm to prove it can come back stronger after a period of animosity.

Ms Hallett added: “The industry is in great need of somebody to come out and say that it has learnt from the past and is now ready to move on.

“No Sipp company is the same as it was seven years ago and we are one of the lucky ones in that we have been able to re-emerge to a certain extent and are looking at a new and positive phase in our life cycle.”

The reputation that has stayed with Sipps since July 2014 when the Financial Conduct Authority published a Dear CEO letter to all Sipp providers warning of failings on due diligence on non-standard investments has created a vacuum in the market, according to Ms Hallett.

She said: “All the good things about a Sipp have been lost over years and it is time to re-engage with advisers that need these added value products for their clients.”

Ms Hallett claimed that very few providers offered a “true Sipp” with many of the big players in the market focusing on simple Sipps, or platforms, instead.

She added: “These big players usually give the Sipp wrapper away free because what they are about is attracting assets under administration onto their platform. 

“What they are not about is providing a solution for individuals, families or partners of businesses to utilise and create a pension scheme that builds with them through the different life cycle of events. This could include buying a commercial property to run their business or there are still some non standard assets and unquoted shares that do pass the test. 

“There are few providers which provide a true Sipp and we are going to expand in this marketplace because commercial property is still very viable and we have a lot of advisers that still use commercial property as a cornerstone of good solid investment but providers offering this are few and far between.”

amy.austin@ft.com

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