We act for a 56 year old lady who was previously a member of a defined benefit scheme. In or about the Spring of 2011 she was cold called by a representative of a company by the name of TPS who persuaded our client to open a SIPP with Berkeley Burke, to transfer all of the benefits from her defined benefit scheme to the SIPP and to “invest” in storage pods.
In July 2011 the defined benefit scheme of which our client was a member transferred the sum of £65,791.36 to Berkeley Burke. Thereafter Hetheringtons Solicitors were instructed to act on behalf of our client in relation to the conveyancing transaction relating to the store pods. The sum of £62,250.00 was utilised to purchase 7 storage pods in Blackburn.
The storage pods are now of little or no value and, as such, our client has lost her entire investment.
We assisted our client in connection with a claim against Berkeley Burke to the FSCS. Our client was awarded the sum of £62,678.92, being the amount of her claim after taking into account the nominal amount of rental income received.
This must be one of the first FSCS decisions in respect of many thousands of claims now being made against Berkeley Burke.
Paul Higgins, who is a director of Higgins & Co Lawyers Limited t/a Pension Justice stated “I am delighted with the outcome of this claim as it vindicates our long held view that there was a responsibility on the part of the SIPP provider to exercise due diligence. Therefore a failure to do so would make the SIPP provider liable to pay compensation, should the client have suffered a loss”.