A High Court judge says the FCA can submit evidence in a case that could shape how Sipp misselling claims are handled in the future.
In the case, which started today, lorry driver Russell Adams alleges Carey Pensions missold him a self-invested personal pension.
Carey Pensions is accused of using unregulated introducers to invest Adams’s Sipp money into Store First unit pods.
Legal representatives of Adams said the FCA should be allowed to submit evidence to the case as it raises questions of how Sipp providers comply with conduct of business rules and the regulated activities order.
However legal representatives of the defendant, Carey Pensions, said the FCA should not be allowed to submit evidence to the case.
This is because “the FCA has an agenda” in the trial and it “cannot be in the interests of justice” for Carey Pensions to be singled out by the regulator, the lawyers said.
Responding to the arguments Judge Marc Dight said: “The question before me is whether the FCA’s involvement would promote the interest of justice. Given the questions raised I am inclined to let the FCA to intervene in a limited basis.”
The case is significant as other cases with similar issues have emerged.
For instance, the High Court has approved a group litigation order relating to claims against Berkeley Burke Sipp Administration in February.
There, it is alleged Berkeley Burke established the Sipps in breach of the Financial Service and Markets Act 2000, after unregulated third-party firms advised them to transfer their traditional private or occupational pension funds to a Berkeley Burke Sipp in order to invest into a variety of high risk schemes.
Money Marketing understands the FCA has taken an interest in these cases as they raise questions about what responsibility Sipp providers have to investors when underlying investments go badly.