The failed SIPP firm is receiving claims for compensation in relation to due diligence failures.
A failed self-invested personal pension (SIPP) firm has received 50 claims through the Financial Services Compensation Scheme (FSCS), it has been revealed.
Pointon York entered liquidation in November 2018, with the FSCS opening up claims against the firm in July 2019.
The FSCS has since told reporters it has received the compensation claims in relation the SIPP provider’s failure to carry out due diligence obligations.
The FSCS is a statutory deposit insurance and investor compensation scheme. It can compensate clients if a financial firm is unable to. It has often been described as a “lifeboat” fund.
In the 2018/19 financial year, the compensation scheme paid out £123m in SIPP-relation claims, up from £11m the previous year, showing a worrying trend in relation to SIPP advice. Almost a quarter of all compensation paid was in relation to SIPPs.
The lifeboat fund is looking into various documents and is in contact with various parties to try to retrieve any documents which relate to the due diligence that Pointon York conducted.
The FSCS have a holding page for Pointon York here. On it, they state:
Claims submitted to FSCS against Pointon York relate to the SIPP operator's due diligence obligations in allowing customers to make specific investments under their pensions.
FSCS has already assessed and paid a number of claims made against independent financial advisers already declared in default by us, in relation to advice customers received to transfer their pension into a Pointon York SIPP.
How can Smooth Commercial Law help?
Were you advised to transfer your pension into Pointon York? Are you worried your pension pot has been lost? Smooth Commercial Law may be able to 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 more and more claims in relation to SIPPs, 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.