The Financial Services Compensation Scheme says it is still assessing the investments contained in Lifetime Sipp Company’s book.
In an update to Money Marketing today, the lifeboat fund points out it has 450 claimants who are waiting for their claims to be processed.
The FSCS says in all claim cases the product-type is a Sipp and while it is unable to confirm the investments within them, they are non-standard and high-risk in many cases.
Once it has further clarity about those investments the FSCS hopes to devise a process with the administrators to resolve any issues. It will then be able to declare the firm in default. In the meantime the claims are on hold
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.
The FSCS has clarified the 3,600 unsecured creditors are separate from the 450 claimants who should have their claims handled within six months once Lifetime Sipp is declared in default.