The Financial Services Compensation Scheme (‘FSCS’) has now started to award compensation in claims against Berkeley Burke.
The SIPP provider was previously subject to numerous complaints in the Financial Ombudsman Service (‘FOS’) as well as legal action including the Group Litigation pursued by Hugh James along with Wixted & Co. On 18 December 2019 we reported that Berkeley Burke had entered administration meaning that whilst the FOS complaints and legal actions would remain unresolved, the FSCS would begin considering claims against the firm.
Hugh James has referred claims to the FSCS against Berkeley Burke on behalf of our clients and we have now seen success in these claims with compensation being awarded.
The FSCS have determined that Berkeley Burke failed to conduct adequate due diligence prior to accepting unsuitable investments to be held within the SIPP accounts it administered. As a result consumers who have lost money on those investments are due compensation for those losses on the investment, as well as compensation for the administration fees paid to Berkeley Burke.
This is a positive development for consumers with unsuitable SIPP vehicles and follows success in claims against other SIPP providers such as The Lifetime SIPP Company and Guardian Pension Consultants. The compensation recovered will allow clients to put right the losses they incurred through SIPP vehicles and allow them to plan for their retirement.