SIPP  

FSCS pays £66mn on GPC claims as administration extended again

FSCS pays £66mn on GPC claims as administration extended again
GPC Sipp went into administration in August 2019 (Chris Ratcliffe-Bloomberg)

The Financial Services Compensation Scheme has received 1,685 claims against defunct self-invested personal pension provider GPC Sipp to date, paying out nearly £66.2mn in compensation.

FTAdviser has learned that of these claims, 1,506 were successful while 157 were unsuccessful. There are still 22 claims in progress with the FSCS.

A report from administrators Evelyn Partners, previously known as Smith & Williamson, filed with Companies House last week (January 10), showed the administration has been extended by a year and a half to June 2024.

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This is the third time the administration has been extended after GPC Sipp originally called in administrators nearly four years ago.

Under the Insolvency Act 1986 the period of an administration automatically comes to an end after 12 months unless extended.

Firm

Total claims

Upheld

Rejected

In Progress

Compensation paid

GPC Sipp (463717)

1,685

1,506

157

22

£66.2m

The FSCS declared GPC Sipp in default in February 2020, with the lifeboat scheme having received 799 claims for compensation against the provider at the time.

GPC Sipp, formerly known as Guardian Pension Consultants, entered administration in June 2019 due to problems with the investments in its Sipps - which included Harlequin Properties, a £400m project involving a luxury hotel development that was largely never built. 

Last year David Ames, the boss of Harlequin, was jailed for 12 years for his role in defrauding investors.

GPC's healthy Sipp and Ssas books were bought by Hartley Pensions in August 2019 for £482,000.

But in March the Financial Conduct Authority told Hartley it could no longer accept new clients and the company entered administration shortly after.

According to the administrators' report for GPC Sipp, all proceeds from the Hartley deal have been received but some formalities relating to the re-registration of certain Sipp and Ssas assets to the Hartley business “seem to be outstanding”.

The administrators of GPC Sipp are considering what effect, if any, the administration of Hartley will have on finalising this matter.

amy.austin@ft.com