Hartley Pensions acquires assets of collapsed Sipp

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Hartley Pensions acquires assets of collapsed Sipp

Hartley Pensions is to administer the good and bad assets of collapsed self-invested personal pension (Sipp) provider Lifetime Sipp, which went into administration in March.

The Sipp and Ssas provider acquired the “untainted” assets and will help wind down the “tainted” book, where the value of the underlying investments has been eroded, including helping clients bring claims with the Financial Services Compensation Scheme (FSCS).

Under agreements put in place previously Lifetime Sipp transferred 40 per cent of its Sipps to Hartley in January, before appointing administrators two months later.

It then met with the regulator about transferring and winding down the remaining book. 

Joint administrators Ian Robert and Ryan Davies of insolvency practitioners Kingston Smith & Partners were appointed on 29 March initially with a view to salvaging the company.

They said they would continue to work with Hartley to ensure the best possible outcome for affected consumers.

Mr Robert said: “The sale to Hartley will ensure that consumers get safe and helpful ongoing management of their Sipp. 

“Additionally, the transaction gives creditors the opportunity to recover compensation, where appropriate, through the FSCS in the most effective way possible”.

The FSCS told FTAdviser last week (14 May) it had received one claim about the failed Sipp with others in the pipeline.

It had not received any claims from the ombudsman by that stage.

About 40 claims are looming with the Financial Ombudsman Service in relation to failed investments such as Harlequin invested via Lifetime.

Further complaints were lodged with Lifetime itself, a letter sent to creditors in April showed.

Lawyers representing a group of 70 Harlequin claimants warned up to £3.5m in liabilities could fall on the firm.

Hartley Pensions was established and approved as a pensions operator under the Wilton Group in late 2016. An agreement had been signed in 2015 to acquire certain assets of the Lifetime Sipp.

carmen.reichman@ft.com