Desperate client forms group against Hartley Pensions

One client, Mr S, who was originally a Berkeley Burke self-invested personal pension customer before it went into administration in September 2019 and its Sipp book was sold to Hartley Pensions, said he felt he had been "fighting alone" for his money back.

"I have been constantly calling and speaking with them and raising complaints to try to get my money back".

He told FTAdviser: "There are legal cases in development but these are taking so long - and many of my fellow investors do not have the luxury of time. 

"They need their money. I need my money.

"I feel if we're all doing our own thing individually, we are facing a bigger struggle than if we all get together and share our experiences and come up with a plan together to tackle the issue, perhaps even going down a legal route and targeting Westminster.

"I am at the end of my tether with this. Something has to be done."

Peter Kubik, partner at UHY Hacker Young, the administrators for Hartley pensions, said he was not aware of any action group being formed.

However, he added: "I am in discussions with the informal client committee that was formed some months ago, one of the members being Sharesoc".

Mr S, who had invested into a storage unit - since failed - within his Berkeley Burke Sipp, has started to contact other Berkeley Burke and Hartley Pensions clients, as well as advisers.

Hartley Pensions itself went into administration in July 2022, and since then, clients have been facing long delays in getting their money out. 

They need their money. I need my money.Mr S

Mr S said he has just received a bill for £150 administration fee plus £30 VAT, which he is contesting.

It is understood there are more than 12,000 Sipp clients, all of whom are contracted to pay a management fee to Hartley. Hartley purchased the businesses of five other companies, so the fee arrangements vary among the clients. 

In May, the Financial Ombudsman Service found against Hartley Pensions in a complaint raised by a client over excessive fees for Sipp administration.

That Sipp had originally been managed by Greyfriars Asset Management before it was taken over by Hartley Pensions in 2018.

Kubik said: "I have been in communication with Mr S about various matters of his Sipp, some of which relate to ‘storage pods’, which were previously managed by Berkeley Burke.

"This firm went into administration and Mr S has been compensated by the FSCS for this investment.

"Mr S has recently been charged a fee of £150 plus VAT; he has queried this charge and I am awaiting documentation from him which supports his position that no charge should be levied."

Long wait

As reported by Amy Austin for FTAdviser in April, clients have been informed they may have to wait up to a year to get some of most of their Sipp assets from the Hartley Pensions administrators, UHY Hacker Young.

One pensioner couple, Mr and Mrs Potts, who are advised by Julian Pruggmayer, principal of Financial Risk Management, told FTAdviser in April they had been trying to get their money transferred, to no avail.

Pruggmayer said even if his clients were eventually able to get their funds transferred, they will be subject to an administration fee upon exit.

At the time, Hacker Young said part of the administration process was to reconcile all the assets that Hartley administers on behalf of clients - approximately £1.2bn - to make sure the assets are securely held by the trustee companies. 

The administrators expected to have completed this by the end of April. UHY Hacker Young is also preparing an application to court to ask it to ratify a charge that the administrators will make against clients' Sipp assets.

This would mean clients can start transfers, but there is no definitive timescale set for when people can get their money.

Even drawdowns had been restricted to £1,000 a month temporarily. 

In an update on this, UHY Hacker Young told FTAdviser: "The reconciliation process is still ongoing but we are hopeful to have this concluded within the next few months. 

"We are also in the process of finalising an application to court to have ratified an exit and administration charge to clients in order to facilitate the transfer out of the clients Sipps to a new provider."

It is hoped the court hearing will take place by the end of September.

The administrator added: "Clients can continue with their monthly drawdowns, however we are reviewing extraordinary requests for additional drawdowns case by case."

Drawdown delays

The Potts, who are both in ill health and vulnerable, have now told FTAdviser they have asked to for just 1 per cent of their pension fund to be paid out, but even this seems to be problematic.

Potts told FTAdviser he had asked why it was taking so long and was informed that it was due to the large number of requests to drawn down funds, as  UHY Hacker Young have to agree to all requests and payments.

Kubik said: "There has been a long and protracted discussion with the Potts family and their financial adviser. Originally they were requesting the transfer out of their schemes and as explained above we were not able to facilitate this. 

"It is not until recently that they have requested an additional drawdown over and above their normal monthly drawdown.

Pruggmayer said: "One of the main selling features of a pension is that the funds are totally secure. Without being consulted, my clients had their funds transferred under approval of the FCA to Hartley Pensions.

"Their money is nothing to do with the assets of Hartley Pensions, yet my clients now find their pension assets have effectively been seized, it appears.

"It is becoming more and more clear each day that every organisation that should be regulating this for my clients is running for cover."

The Potts have been put in contact with Mr S, as has another client of adviser Pruggmayer, who has also been struggling to get any of her money out from the Hartley administrators. 

There has been a long and protracted discussion with the Potts family and their financial adviser.Peter Kubik, UHY Hacker Young

Pruggmayer said he was in favour of such a group being put together.

He told FTAdviser: "I had a talk with my client and he is certainly happy to chat with Mr S and see just what sort of action group he is contemplating. I would be interested in hearing from him myself."

Join the group!

If you or any of your clients have invested with Hartley or any of the Sipp providers who were folded into Hartley over the years, and would like to join Mr S's group, please contact FTAdviser and we can make the introductions.

simoney.kyriakou@ft.com