The Financial Services Compensation Scheme has received more than 300 claims against the collapsed Lifetime Sipp Company in the last six months.
Data provided to Money Marketing by the FSCS shows the number of claims being considered by the lifeboat fund has ballooned from 220 in July to 310 at the current time.
Most of the claims are pensions related with 213 claims under consideration. The majority of the rest are at an earlier stage of application, so the product or advice type they are related too has not been determined yet.
None have been upheld or rejected for compensation yet as its approach to claims against the likes of Lifetime is a relatively new one.
The FSCS says the claims now have to be seen in the context of the FCA’s tougher stance regarding the due diligence responsibilities Sipp providers have to clients.
The FSCS adds it has sought the advice of an external legal counsel about these claims and is currently awaiting that advice.
Once it has received and considered the advice, it hopes to be in a position to decide whether or not to formally declare Lifetime in default so it can start paying out compensation.
Administrators Kingston Smith & Partners previously estimated compensation claims against the Sipp provider would be valued around £56m.
Around £22m of claims were from clients who have no insurance, while £34.5m may have insurance.
The nearly £56m claims are spread across more than 2,000 Sipp clients and account for the most of the claims logged against Lifetime.
Lifetime operated 4,746 Sipps in total across three tranches with two tranches of “untainted” Sipps and one tranche of “tainted” Sipps.
There are 1,892 Sipps in the first tranche, 836 in the second tranche and 2,018 in the third “tainted tranche”.
In May Money Marketing reported Hartley Pensions had bought the “untainted” assets of Lifetime and agreed to administer the “tainted” Sipps as well.