The Financial Services Compensation Scheme has today declared The Lifetime Sipp Company in default.
Lifetime Sipp was placed into administration in March 2018 and later went into liquidation on the 2 April 2019.
The complexity of claims related Lifetime Sipp’s books and led to the FSCS having to spend a lot of time making detailed assessments of what was in them.
A report on Companies House from 2 April authored by Lifetime Sipp’s administrators said it was proving difficult to handle 3,600 unsecured creditor claims valued at £56.5m.
The report said it will take “several years” to resolve and the administrators continue to work with the FSCS on the matter.
In a statement from today the lifeboat fund says: “FSCS has now concluded its investigations into the firm’s practices. Our investigations have focused on the levels of due diligence Lifetime carried out prior to allowing customers to make specific investments under their pensions. FSCS has determined that protected claims exist against the firm.
“Claims already submitted against Lifetime will shortly be passed to our claims processing teams for assessment. Around 400 customers are affected.”