Clients who invested their Sipps with collapsed IFA Rockingham have been given a lifeline with the transfer of their investments to Sipp provider Carey Pensions UK.
Rockingham Independent was put into liquidation in March. The process of putting Rockingham into liquidation meant the firm had to apply to be closed down, and therefore could no longer administer the Sipps it held.
Sipps held with Rockingham have now been transferred to Carey Pensions UK, part of Guernsey-based financial services provider Carey Group.
Carey Pensions UK chief executive Christine Hallett says: “We have taken over all the administration of the Rockingham Sipps.”
Rockingham was fined £35,000 by the FSA last September for putting 426 clients at risk at receiving unsuitable advice to invest in unregulated collective investment schemes and in Luxemburg-based life settlement vehicle ARM Asset Backed Securities.
Rockingham held itself out as whole of market but tended to recommended clients invest its pension drawdown retirement income tri-investment account, known as Rita.
The Rita product was 10-year annuity product wrapped in a Sipp. It invested in ARM bonds which in turn invested in life settlement plans. However in August 2011 the Luxemburg regulator refused to grant an authorisation licence to ARM.
UK investors have paid £75m into ARM bonds. Out of the 2,000 UK investors in ARM bonds, at least 200 sales were advised by Rockingham Independent.
ARM has received 11 proposals as part of a tender process to restructure the portfolio, which are currently being reviewed.