“Hundreds” of claims relating to SIPPs are on hold with the Financial Ombudsman Service (FOS), pending the outcome of the Carey Pensions case, a solicitor has said.
APJ solicitor Glyn Taylor said the slow litigation process surrounding the Adams vs Carey Pensions case – which was heard at the High Court in London last March – meant “hundreds” of cases were on hold with the FOS, pending the outcome.
A year ago, almost to the day, self-invested personal pension (SIPP) provider Carey Pensions was accused of being “in bed with scammers” at the High Court.
Lorry driver Russell Adams alleged Carey Pensions mis-sold him a SIPP. He and his lawyers accused the SIPP firm of using a Spain-based unregulated introducer to facilitate investments in Store First unit pods.
Taylor suggested the judgement on the case was taking a long time to implement because of its high-profile nature: “It is unusual, to say the least, for it to take 12 months for the initial judgement to be handed down,” he said. “It is such a high-profile case as far as the industry is concerned, and has the involvement of the Financial Conduct Authority [FCA].
“The FCA made very bold submissions as to what it considers to be the regulatory requirements. I can only think really they that want to get it right. I still think [the judgement] will be appealable either way.”
APJs’ clients include customers of SIPP providers Liberty SIPP and Guinness Mahon. Taylor said the FOS had provisionally upheld some cases against Liberty SIPP, which the SIPP provider is now appealing.
The FOS declined to comment.