Investigations are currently underway by the Financial Services Compensation Scheme (FSCS) into whether or not they should pay out compensation in relation to claims against collapsed SIPP provider Pointon York. This is related to question over the due diligence on investments it accepted, with Pointon York entering liquidation in November of 2018. The FSCS have said that many of Pointon York’s SIPP members saw their pensions transferred over to high-risk, non-standard investments, some of which collapsed.
This move has come following advice from IFAs, with the FSCS stating: “we have 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 Pointon York SIPP. The FSCS is currently investigating the practices of Pointon York, specifically seeking to establish what levels of due diligence were carried out by the firm, prior to permitting customers to make specific investments under their pensions.”
An FSCS spokesperson shared that they had received 31 claims against Pointon York SIPP Solutions in recent weeks, with a number of others expected to be coming soon. Back in, 2014 Curtis Banks acquired the SIPP book of Pointon York, but did not acquire the firm itself. In November of last year, Pointon York as a business fell into administration.
The FSCS also stated: “SIPP operator due diligence has been an industry hot topic in recent years and FSCS is aware that there are a number of pending civil claims in the High Court against various SIPP operators in respect of alleged due diligence failings.”
Early last year, the FSCS declared three SIPP providers – Brooklands Trustees, Stadia Trustees and Montpelier Pension Administration Services – in default, while the FSCS have also recently said that GPC SIPP, currently facing claims from around 140 investors, was also being investigated.
At Pension Justice, we have helped many clients in similar situations to claim compensation related to their financial losses. Any individual or couple who 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.