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Collapsed Sipp provider racks up £56m in compensation claims

Compensation claims against collapsed Sipp firm Lifetime Sipp Company have been valued at nearly £56m, with potentially more in the pipeline, according to its administrators.

In a report published on Companies House today, Kingston Smith & Partners gives a breakdown of claims against the provider that went into administration earlier this year.

Kingston Smith & Partners estimates the total number of claims to be near £56m. Around £22m-worth of claims are from clients who have no insurance, while £34.5m might have insurance.

The number of potential claims still to come is uncertain, Kingston Smith says.

Earlier this week Money Marketing reported fellow provider Hartley Pensions  had bought the “tainted” assets of Lifetime Sipp.

Money Marketing has now discovered these “tainted” assets are spread across 2,018 Sipp clients and account for the nearly £56m claims logged against Lifetime.

Joint administrator Ian Robert says Kingston Smith & Partners wrote to 3,500 addresses to find out the scale of the claims and have settled on 2,018 actual Sipp clients chasing almost £56m in total.

He adds: “But we note there could be more claims and we have not been able to develop a comprehensive picture of who is and who is not exactly covered by insurance. So the £34.5m batch of claims probably do have insurance but we cannot say for sure.

“We have informed the FCA of what we [as administrators] have been doing and expect many of these claims will be settled by the Financial Services Compensation Scheme and Financial Ombudsman Service.”

Reacting to the adminsitrators’ report, Intelligent Money chief executive Julian Penniston-Hill says: “It is shocking such a small Sipp provider could have so many claims against it. The numbers of clients and sums of money involved is eyewatering.

“The fact the report notes there could be more claims that are not known but could materialise in the future is worrying.”

Lifetime had links to unregulated investment schemes such as Harlequin and the FCA is set to claim Sipp provider Berkeley Burke breached its conduct rules by accepting esoteric investments without due diligence in an upcoming court case that could potentially decide what responsibilities Sipp providers have to bear in future.


Hartley Pensions buys collapsed Sipp firm’s asset book

Hartley Pensions has bought the “untainted” assets of the Lifetime Sipp Company, which went into administration earlier this year. An update published today on the website of Lifetime’s administrators Kingston Smith & Partners says Hartley Pensions has also agreed to administer the tainted Sipps held by Lifetime Sipp. The administrator described tainted assets as those where […]


MPs grill FCA on supervision of Sipp providers

MPs have asked the FCA to explain what repercussions a Sipp provider faces if it fails to meet the regulator’s due diligence expectations. A letter from work and pensions select committee chairman and MP Frank Field to the FCA’s supervision director Megan Butler raises concerns about the role of Sipps in relation to defined benefit transfers. […]


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Investment firm Dolfin has bought a “significant” equity stake in national IFA  Alexander House Financial Services. Alexander House is an appointed representative of Old Mutual Wealth-owned network Intrinsic. Dolfin is an independent financial services company providing custody, execution and asset management to advisers and their clients. Nick Kelly: The number one deal breaker for acquisitions […]


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There are 4 comments at the moment, we would love to hear your opinion too.

  1. Well…. when the sales pitch of the BDM includes the phrase “we like to operate in the margins where the big SIPP providers fear to tread”….you should know what to expect…

  2. As Julian Penniston-Hill says, this is shocking.

    What’s worse, is it’s the tip of the iceberg where SIPPs are concerned and as the Treasury Select Committee are asking ‘where was the regulatory oversight?’

    As usual, the remediation costs will fall on regulated firms via FSCS.

    It would be much fairer if the bank fines for regulatory failures were used to plug the likely £500m hole that will emerge from the SIPP and DB transfer scandal.

  3. David Leuchars 1st June 2018 at 1:43 pm

    That FSCS levy is surely going to be well short of the level of funding required if a few more SIPP providers go the same way, it’s only going to get worse for a few years yet and the regulated firms just can’t keep getting bled dry!

  4. Not a week goes by without a Sipp Provider hitting the headlines. Is there nobody regulating them as it seems not as they are out of control costing innocent people their life savings

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