FSCS declares three SIPP operator firms in default
The Financial Services Compensation Scheme (FSCS) has declared three SIPP operators – Brooklands Trustees Ltd, Stadia Trustees Ltd and Montpelier Pension Administration Services Ltd – in default.
The FSCS said in a statement last Friday that it has received approximately 150 claims against the companies, relating to “the way in which these firms established, operated and administered SIPPs through which consumers invested in non-standard investments such as storage pods, oil fields, diamonds and overseas property”.
The organization said consumers could get back money they have lost as a result of their dealings with one or more of these entities, providing they are able to prove to it that “their application for compensation relates to a protected claim”, which it defines as “a valid claim made in respect of a civil liability owed by the firm, or successor (entity), to the claimant, or successor, which is covered by FSCS”.
FSCS’s chief executive Mark Neale said: “The FSCS steps in to protect consumers when authorised financial services firms fail. We are satisfied in these cases that certain claims are eligible for compensation, and expect to receive more claims of this nature in the coming months. We will be getting in touch with customers of these firms as we may be able to help.”
The FSCS said that it expects to receive more claims during 2018/19, and as a result forecasts that the funding requirement for investment providers will be £34m for that year. As reported, Brooklands Trustees – which marketed Pension products to UK residents and expats under the Brooklands name – went into administration in 2016, and at that point transferred oversight for its Pensions to other entities.
Do you, or someone you know, have a Pension with Brooklands? If you need help please contact me now………..