The Financial Services Compensation Scheme has received around 500 complaints to date regarding Lifetime Sipp according to data given to Money Marketing.
The Sipp provider was placed into administration in March 2018 and went into liquidation on the 2 April 2019.
The complexity of claims related to Lifetime Sipp’s books and has resulted in the FSCS having to make 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.
Subsequently, the company was declared in default in June, no claims have been rejected and one claim worth £85,000 has been paid so far.
The lifeboat fund says the claim-types are almost all Sipp, pension transfer, or other pension advice.
These relate to the due diligence carried out by Lifetime Sipp in allowing customers to make specific investments under their pensions that have become illiquid.
In these types of claim the FSCS says it looks at the responsibilities of trustees under the master trust deed of the Sipp and due diligence carried out by the Sipp operator in allowing customers to make specific investments under their pensions.
It also asks whether serious issues in respect of certain funds have been appropriately communicated to customers.
At the beginning of July FSCS chief operating officer Jimmy Barber told the Treasury select committee that it has been recruiting more staff to deal with complex Sipp cases.