News and Events

£1bn SIPP provider falls into administration

  • Posted

SIPP provider Intelligent Money has gone into administration, with its client accounts and assets transferred to pension administrator Quai through a pre-pack administration deal. The FCA announced that joint administrators from Interpath Advisory were appointed following the business's agreement to an asset retention restriction in February.

The Financial Conduct Authority (FCA) confirmed that Intelligent Money's entry into administration resulted from a final decision by the Financial Ombudsman Service, which upheld complaints regarding certain investments allowed within its SIPPs. This led to the acknowledgement of financial liabilities associated with these and other complaints. The Financial Ombudsman Service had received over 80 complaints against the SIPP provider. It is confirmed that legal firms represented some claimants. The FCA's notice stated that the Financial Services Compensation Scheme is actively receiving claims against Intelligent Money and will be investigating whether any claims meet the qualifying conditions for compensation.

On the same day the administration was announced (28 May), Intelligent Money’s accounts were transferred to Quai Investment Services Limited. The FCA confirmed that clients can continue to manage their accounts as before, and Quai stated that the acquisition did not include any potential liabilities attached to Intelligent Money.

The acquisition will involve the transfer of Intelligent Money's technology and staff to Quai, ensuring a smooth transition for all clients, their assets, and services, as stated in a press release by Quai. P1 Investment Management will continue to manage Intelligent Money's funds and portfolios following the acquisition. Quai's CEO, Tony Webb, commented, "This move not only ensures stability and continuity of service for Intelligent Money IFAs and clients but also represents a significant enhancement of our technical infrastructure." Quai, established in 2011, offers an outsourced administration platform. The acquisition of Intelligent Money adds £1 billion of client assets, bringing Quai's total under administration to £2 billion.

Quai experienced a loss of around £1.1 million before tax in the fiscal year ending October 2022, as indicated in its recent financial statements submitted to Companies House. The company's auditor raised significant uncertainties that cast doubt on its ability to sustain operations and fulfil its financial commitments.

In a statement Quai stated that ‘the business is now profitable with no issues in working capital or cashflow.’

Intelligent Money was known for its low product fees, charging £195 annually for its SIPP product. However, last December, the business requested a one-off 1% payment from all SIPP holders, citing high operational and regulatory costs, but later reversed this decision following backlash. The

company also offered its own range of investment portfolios, run by P1.

How can we help?

It’s very likely that all customers of Intelligent Money will receive contact from Quai if only to generate comfort following the administration. At Smooth Commercial Law we a wealth of experience where a SIPP provider has fallen into administration, so if want to ask our experienced team of pension clams specialists we can offer a free review of your case and tell you if you have an eligible claim. We have always offered a no win, no fee arrangement too should you wish to instruct us.

Looking for an independent solicitor who specialises in mis-sold pensions? Call us today on 0800 0469976, or fill out the online enquiry form and we will be in touch.