Yet another SIPP provider, namely Heritage Pensions, has entered administration.
The Financial Ombudsman Service (FOS) upheld 4 complaints against Heritage in January 2022. The complaints related to the failure by Heritage to conduct adequate due diligence on the financial advisors who referred business to Heritage before allowing clients to open a SIPP.
All 4 cases related to introductions made by a now dissolved firm of financial advisors, namely Tailormade Independent Limited. The investments recommended by Tailormade Independent Limited related to Harlequin Properties, Green Oil Plantations and Carbon Credits.
FOS found that the “investments” being recommended by Tailormade Independent Limited were high risk and not suitable and Heritage should have refused to accept the introductions.
Therefore it is now possible to pursue a claim to the Financial Services Compensation Scheme (FSCS) against Heritage and the limit of compensation will be capped at £85,000.00.