23 January 2020 | Comment | Article by Neil Stockdale
In June 2019 the pension firm GPC SIPP Limited went into administration leaving thousands of its customers facing uncertainty as to the future of their pension funds.
According to its administrators, Smith & Williamson LLP, GPC became insolvent as it was facing potential legal claims relating to over 2,500 self-invested personal pensions (SIPPs). These SIPPS held non-standard investments such as in the Harlequin property development schemes and Store First Limited’s self-storage units. The investments themselves are now worthless resulting in significant losses for GPC customers.
The administrators have also reportedly said that approximately £2.4 million is owed to GPC by its customers in unpaid fees for administering these pension funds. Despite the fact that customers hold GPC partly or wholly responsible for their losses, it is understood that many of them are now being pursued for unpaid fees. The administrators will contend that investors remain legally obligated to pay these fees despite GPC’s collapse and the underlying investments having been found to be worth nothing.
It does seem remarkable though that customers who appear to have been so badly let down by GPC are now facing the prospect of paying further fees for SIPPs they no longer want or need. We are aware of other SIPP providers in similar circumstances agreeing to waive fees and it is disappointing that a similar approach hasn’t been taken here.
We present hundreds of SIPP customers in relation to claims arising out of failed pension schemes including GPC. If you have been affected by this issue and believe you may have a claim then please contact us for specialist advice.
Even if you have already received compensation as a result of a claim against a financial advisor you may be able to make a separate claim against your SIPP provider or other advisors involved in the scheme.
If you are not an existing client of Hugh James and have invested through a SIPP, we may be able to assist you in bringing a claim for compensation.
Contact us today for a free, no obligation consultation.