A law firm has issued five cases against Sipp administrator Guinness Mahon Trust Corporation over allegations it worked with unregulated introducers to facilitate non-standard investments.
Solicitor firm Anthony Philip James & Co says five claimants allege they were put into investments not suitable for their needs.
The cases relate to investments between 2013 and 2016, into schemes including Ethical Forestry and Global Plantations.
This is the latest case APJ has filed against a Sipp firm over allegations of misselling. It is also preparing to issue a further 20 cases against Guinness Mahon in the coming weeks.
APJ solicitor Glyn Taylor says FCA guidance issued in 2013 to remind Sipp providers of their regulatory responsibilities in relation to Sipp investments has not always been taken on board.
He adds: “What is of great concern is that while some Sipp operators heeded the warnings made by the FCA in not allowing investors to invest in non-standard assets within a Sipp, what’s clear in all our cases is that Guinness Mahon allowed high-risk non-standard investments to be made through the Sipp until 2016, long after the FCA highlighted that high-risk investments were unsuitable for retail customers.”
In addition to the cases against Guinness Mahon, APJ is also acting in 30 cases against Liberty Sipp.
Taylor continues: “In total, we’re currently working with over 1,500 clients in relation to missold Sipps. It’s clear that Guinness Mahon is not alone in not abiding by the regulations required by the FCA, and as a result a large number of investors have suffered. We believe that the current cases on our books are only the tip of the iceberg in relation to misselling of Sipp investments.”
Guinness Mahon did not respond to requests for comment in time for publication.