Another SIPP advice firm has entered “special administration” after it cannot meet compensation claims.
The Financial Services Compensation Scheme (FSCS) has this week declared Devon-based adviser firm, Chartergroup Financial Management (CGFM) in default following numerous SIPP related complaints.
The FSCS have stated it has received 14 claims against the advice firm, with complaints involving advice to transfer into a self-invested personal pension (SIPP) featuring on the Financial Ombudsman Service (FOS) website.
The FSCS provided an update on January 24th 2020, stating that they had determined CGFM could not meet the compensation claims, and the firm had failed – or entered into “special administration”.
The news comes weeks after the FSCS increased its overall levy to £635m for 2020/21, with intermediaries paying £213m. The increase in levy was down to SIPP operator failures. The FSCS stated:
These are claims where the conduct of the SIPP operators the FSCS has declared in default gives rise to a civil liability to the investors, because the SIPP operators failed to exercise reasonable care and skill, breached regulatory requirements and/or breached trustee duties.
This follows a rough beginning of the year for advice firms more generally, with the early indications looking like 2020 will be just as turbulent for SIPP providers as last year.
Earlier this month, Welsh advice firm Economic Financial Solutions, which traded as Torch Wealth Management entered administration – again as a result of an increase of SIPP complaints.
This was coupled with Sutton Coldfield-based Blackstar Wealth Management, who was declared in default on January 14th with a note on the FSCS website stating the firm was "currently no longer trading”. Blackstar had received several FOS complains against it, the majority involving SIPP investments into unregulated and high-risk schemes.
Have you been affected by any of the above mentioned financial advice firms? Have you been told to transfer your pension into a self-invested personal pension? If so, you may have a claim for compensation.
How can Smooth Law Commercial help?
At Smooth Commercial Law, our team of experts have extensive experience in dealing with a whole manner of claims that arise from negligent and/or unsuitable financial advice. We are seeing an increase in claims for mis-sold pensions, and have managed to secure compensation for many of our clients.
Should you have a claim, we can deal with your case and look to recover compensation for not just your loss of investment but also any adverse tax liabilities that you may now be facing as well.