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Collapsed Sipp firm compensation work to take hundreds of hours

Administrators estimate it could take hundreds of hours to handle nearly £56m of compensation claims against collapsed Sipp firm Lifetime Sipp Company.

In a report published today on Companies House, Kingston Smith & Partners says “an unusually high level of time will be required” to deal with consumer claims.

Kingston Smith estimates it could take 375 hours and cost more than £280,000 to do all this work.

The document also gives a more detailed breakdown of what assets Hartley Pensions bought when Lifetime went into administration earlier in the year.

In May Money Marketing reported Hartley Pensions had bought the “untainted” assets of Lifetime and agreed to administer the “tainted” Sipps as well.

Money Marketing then established the “tainted” assets are spread across more than 2,000 Sipp clients and account for the nearly £56m claims logged against Lifetime.

The new information contained in the update today reveals there are 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 tranche meaning Lifetime operated 4,746 Sipps in total.

Kingston says all of these tranches were sold to Hartley Pensions in May for £325,000.



Adviser to compensate over Lifetime Sipp Harlequin investment

Advice firm Lansdown Place Financial Management must compensate a client who complained about the transfer of their pension into a Harlequin fund through a Lifetime Company Sipp. A Financial Ombudsman Service ruling says Lansdown Place should not have processed the transfer into the unregulated investment. In 2012, Mr T invested £30,000 of his Sipp into Harlequin […]

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 […]

Killing the Sipp cover.jpg

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 & […]


Vitality launches in-house funds in health investment push

Vitality has entered the investment and platform markets in a bid to encourage healthier lifestyles through financial incentives. The health insurer has set up a new company, Vitality Invest, to run its own funds and investment platform for the first time. In an adviser-only offering, it is attempting to provide additional incentives to investors who […]


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There are 2 comments at the moment, we would love to hear your opinion too.

  1. Sounds fair. An interesting comparison to the £100m that PWC are apparently charging for Beaufort Securities.

    • Absolutely, I’m sure Kingston Smith will make a bit of profit from their work – and quite right too, but a worthwhile service at a sensible price and I don’t think anyone paying FSCS levies will have any complaints on this one. To be fair to PWC, they did manage to halve their quote to only £50m or so!!!

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