iPensions buys clients of collapsed Sipp provider

iPensions buys clients of collapsed Sipp provider

iPensions has bought the book of business from collapsed self-invested personal pension provider Forthplus Pensions for an undisclosed amount.

The acquisition involves assets under management of £500m and forms part of iPensions growth strategy, the firm said.

Forthplus Pensions appointed administrators in October after it was unable to renew its professional indemnity insurance (PII).

The provider had also faced uncertainty with an ongoing Financial Ombudsman Service case relating to a complaint made against the company in October 2018, which if upheld could have led to further claims.

FTAdviser later revealed, that as of October 21, the Fos had about 140 cases against Forthplus Pensions, which would be referred to the Financial Services Compensation Scheme.

As iPensions Group bought the book of business and not the company, the Fos cases remain the responsibility of Forthplus Pensions.

The Fos said the majority of the complaints concerned introductions from financial advisers based in the Czech Republic and Cyprus. The Sipps were invested in offshore investment bonds mostly based in Bermuda or Mauritius, which were invested in a variety of funds.

The Fos had issued a number of “representative provisional assessments” which found that Forthplus had failed in its oversight in preventing advice firms from acting outside of their permission levels.

But Forthplus did not agree with these assessments and submissions were made in return and the Fos was preparing to issue a number of final decisions.

iPensions Group, which is based in Manchester, will retain the Forthplus Pensions operations in Edinburgh.

Craig Cheyne, managing director of iPensions Group, said: “We empathise with Forthplus Pensions’ members and recognise that the past months must have been unsettling for them and staff.

“We look forward to supporting Forthplus Pensions members by continuing to provide our personable service and we welcome the expert administration staff at the company.

“iPensions Group is focused on delivering transparent service in a timely manner and our innovative technology combined with decades of experience and expertise in UK and international pensions means we can offer a secure home for their pensions.”

iPensions Group offers a full range of Sipp services through the adviser market with its range of Sipps including the Adviser Sipp, Platform Sipp, USA Sipp, and its Irish Transfer Service.

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