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Sipp firm facing 40 FOS claims collapses

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Sipp firm facing 40 FOS claims collapses

The Lifetime Sipp Company, which was facing 40 claims at the Financial Ombudsman Service (FOS), has fallen into administration.

The Sipp operator’s collapse comes two months after the chairman of the Sipp trade body, Zachary Gallagher, warned the Financial Services Compensation Scheme’s (FSCS) decision to pay out for claims against three Sipp providers (Brooklands Trustees, Stadia Trustees, and Montpelier Pension Administration Services) would encourage claims against other Sipp providers. Gallagher said the ruling 'increased risk of Sipp operator failure' by encouraging claim. 

Ian Robert and Ryan Davies of insolvency practitioners Kingston Smith & Partners were appointed joint administrators of The Lifetime Sipp on 29 March, according to a statement on their website. New Model Adviser® understands the Sipp firm had around 4,000 clients.

Robert did not disclose why the firm had collapsed but said there were a number of claims against the Sipp provider at the FOS.

‘Following our appointment, our priority is to protect the position of the consumers as best as possible.  We’ve been in contact with the Financial Conduct Authority (FCA) about our appointment and will continue to keep them informed during the administration. We’re aware there are a number of claims currently with the FOS which will continue,’ he said.

A spokesman for the FOS said it has 40 open cases against the business.

Documents accessible online show a history of investment updates from the Sipp firm for a number of troubled unregulated investment schemes, including Caribbean hotel development Harlequin Property and US housing scheme Invest US

In 2016 New Model Adviser® reported The Lifetime Sipp was charging its members a £300 'non-standard asset fee'.

 

 

 

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