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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.

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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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