This week (19 October) yet another SIPP operator fell into difficulties when it was unable to renew its PI insurance.
Forthfplus Pensions (‘Forthplus’), a self-invested personal pension (SIPP) provider appointed Leonard Curtis Business Solutions Group to deal with its administration.
It is reported that Forthplus administered around 2500 SIPPs of a value of around £500million.
The SIPP operator had faced a number of complaints at the Financial Ombudsman Service (‘FOS’) relating to pension transfers and unsuitable investments. The FOS had recently found against Forthplus in several provisional decisions, determining that they had failed to act in the best interests of their clients and failed to prevent advice firms from acting outside of their permissions.
Whilst these decisions had not yet been made final and binding, it is likely that Forthplus would have faced further complaints, in due course.
What of the 140 complaints with the FOS? The FOS has confirmed that it is preparing to refer those cases on the Financial Services Compensation Scheme (FSCS), the industry’s lifeboat fund and fund of last resort. The FSCS can award compensation up to a statutory limit of £85,000 in claims against firms that are no longer able to meet claims against them.
