Failed SIPP firm receives 50 FSCS claims

Hannah Godfrey reports...

Failed self-invested personal pension (SIPP) firm Pointon York has received 50 claims through the FSCS, RP’s sister publication Professional Adviser can reveal.

The Financial Services Compensation Scheme (FSCS) started accepting claims for the failed firm in July after it entered liquidation in November 2018.

The lifeboat fund has since told PA it has received 50 claims relating to the SIPP provider’s failure to carry out due diligence obligations.

An example of Pointon York’s failures, it said, included failing to carry out any due diligence on the underlying investments held in a customer’s SIPP. All claims are in progress and at the earliest stages.

In its 2018/19 financial year, the lifeboat fund paid out £123m in SIPP-related claims, up from £11m the previous year. SIPP-related compensation made up almost a quarter (23%) of all compensation paid out by the FSCS that year.

An update on the FSCS’s website on Monday (19 August) revealed the lifeboat fund is still investigating the practices of Pointon York to determine if there are protected claims against the firm.

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.