There has been lots of publicity surrounding due diligence within the SIPP (self-invested personal pension) industry for many years now, and Lifetime was one of the questionable operators.
About Lifetime SIPP provider
The company went into administration in March 2018, which was followed by liquidation in April 2019. The company’s administration led to an investigation by the FSCS (Financial Services Compensation Scheme) which made a declaration that Lifetime was in default due to failure to meet due diligence obligations at the time of accepting customer investments.
Many of the Lifetime investors used independent financial advisers and were advised to transfer their existing pensions into the SIPP. The FSCS found that customers transferring pensions into Lifetime had their funds put into non-standard, high-risk investments and many of these went on to become illiquid.
FSCS declares Lifeline in default
The FSCS had already declared a number of independent financial investors in default because of their advice to invest in Lifetime. These customer claims have been paid out accordingly. The FSCS stated in June 2019 that it will be accepting claims against Lifetime.
The Lifetime declaration follows on from a 2018 announcement from the FSCS that the SIPP operators, Stadia Trustees Ltd, Brooklands Trustees Ltd, and Montpelier Pension Administration Services Ltd were in default. A number of civil claims against SIPP providers are also pending in the High Court.
Current Lifetime claims with the FSCS
The FSCS has already received about 500 claims against the SIPP provider Lifetime, and so far none of these claims has been rejected. One payout of £85,000 has already been made. Most claims against Lifetime are in the process of being assessed and it is anticipated the total payout FSCS may need to make could be as high as £3.5mn. The FSCS is funded by the financial services sector. Most of these claims against Lifetime relate to pension advice, pensions transfers, and SIPPs in general.
Were you mis sold a Lifetime SIPP or are you a victim of pension mis selling?
If you’ve been mis sold a SIPP with Lifetime, get in touch with Pension Justice or the FSCS direct to find out how to put in your claim against this provider. We specialise in providing advice about mis sold SIPPs and pensions, and our legal specialists can help recover compensation even when financial advisers are no longer in business. Get in touch today to find out more.