The Financial Services Compensation Scheme says it is accepting claims against GPC Sipp that was placed into administration on 11 June 2019.
Smith & Williamson’s Adam Stephens and Henry Shinners have been appointed joint administrators of GPC Sipp.
GPC Sipp specialises in the provision of technical and administration services to Guardian Pension Trustees Limited, which acts as the corporate trustee of Sipps and SSASs.
It administers around 3,200 Sipps and around 50 SSASs, with a total investment value of roughly £130m.
In a statement the FSCS says: “FSCS is aware that many GPC customers were advised by independent financial advisers to transfer existing pensions into a GPC Sipp. Following the pension transfer, customers had their pension funds placed in high-risk, non-standard investments, many of which have become illiquid.
“FSCS has already assessed and paid a number of claims made against IFAs already declared in default by FSCS, in relation to advice customers received to transfer their pension into a GPC Sipp.
“Although FSCS is accepting claims against GPC Sipp, claims will not immediately be passed to our claims processing teams for individual assessment. Our first step is to be satisfied that GPC, due to its practices, is liable for customers’ losses.”
In May 2018 Money Marketing reported around 150 investors were pursuing legal claims against GPC Sipp over allegations it was responsible for losses incurred from high-risk investments in overseas property Harlequin.
Lead joint administrator Stephens says Smith & Williamson’s objectives are to rescue the company as a going concern; or achieve a better result for the company’s creditors if it were wound up without first being in administration; or realise property in order to make a distribution to one or more secured or preferential creditors.
He adds: “In line with these objectives, the joint administrators are continuing to trade the business whilst in ongoing discussions with a number of interested parties as part of our work to try to sell the company’s business as a going concern. Any interested parties should contact the company immediately. All existing employees have been retained as part of this process.”