It has recently been revealed that GPC SIPP, who have provided pension administration on behalf of Guardian Pension Trustees, has collapsed. In light of this, the Financial Services Compensation Scheme (FSCS) will now be accepting claims against GPC SIPP since their entry into administration.
GPC SIPP has been holding around £130m of client assets across 2,300 SIPPs. On their personal website, the FSCS said they would be accepting claims in relation to investments held through GPC SIPP, claims they defined as “relating to the SIPP operator’s due diligence obligations in allowing customers to make specific investments under their pensions”.
They also stated “We are aware many GPC customers were advised by IFAs to transfer existing pensions into a GPC SIPP. Following the pension transfer, customers had their pension funds placed in high risk, non-standard investments, many of which have become illiquid. FSCS has already assessed and paid a number of claims made against IFAs already declared in default by us, in relation to advice customers received to transfer their pension into a GPC SIPP. Clients should first look to make a claim against the advice firm that originally recommended the investment, especially if that firm is still trading.”
In the past year, three other SIPP providers have been declared in default by the FSCS. By late last year, the lifeboat fund had already paid out £17m for claims against these providers. In January, the FSCS made a public statement that it believed more SIPP providers would collapse during 2019. Adam Stephens and Henry Shinners have been appointed as joint administrators of GPC SIPP and are looking for a buyer for the provider, having held discussions with other firms already.
Stephens stated “The joint administrators are continuing to trade the business while in ongoing discussions with a number of interested parties, as part of our work to try to sell the company’s business as a going concern. Any interested parties should contact the company immediately. All existing employees have been retained as part of this process.”
The collapse of GPC SIPP is another indicator of the huge number of claims that are now being made in relation to a lack of due diligence for investments they accepted. In 2016, GPC SIPP placed a £400 annual fee on clients with so-called ‘non-standard assets’. Additionally, GPC SIPP features investment updates on its website, in relation to a number of unregulated investment schemes which have now collapsed.
If you have been mis-sold a SIPP, or given incorrect SIPP advice, and have suffered financial loss as a result, get in touch with us today by phone on 0800 014 8275, email on firstname.lastname@example.org, or by contact form over at our Contact page. Here at Pension Justice, we have helped many clients in similar situations to recover compensation in relation to their financial loss.