Embattled SIPP provider Carey Pensions has announced it is looking to sell part of its business amid growing losses.
Carey Pensions revealed last week that losses rose to £215,226 in 2017. This is in part down to a number of legal cases relating to historic investments.
The pension provider says it is currently in negotiations to find a buyer for its corporate arm. Once this is completed the rest of the business will be sold.
Legal challenge
The firm is currently fighting a legal battle over the alleged mis-selling of SIPPs. Lorry driver Russell Adams has taken his fight to the High Court, claiming he was mis-sold a SIPP investment in February 2012.
Adams was incentivised to invest into Store First storage pods. This was a high-risk investment option that wasn’t suitable for his needs.
The test case could open the floodgates to hundreds of other mis-selling cases. This will have huge implications for the provider and the wider SIPP industry.
What does this mean for investors mis-sold Sipps by Carey Pensions?
One of our financial mis-selling solicitors, Glyn Taylor, said:
“At this stage, it is unlikely this announcement will affect the ongoing court case against Carey Pensions.
“Likewise for anyone else who believes they have been mis-sold by Carey Pensions. This announcement doesn’t currently affect their ability to seek redress.
“However, it’s likely that Carey Pensions may ultimately be seeking to split the viable business and the part of the business that they are now facing complaints about. It’s unlikely the toxic part of the company would be an appealing investment for any buyer. Instead, this would be put into default meaning investors who have been mis-sold would then have to seek redress from the FSCS. However, payouts have a limit of £50,000 for each claim.
“We would advise anyone who believes they might have been mis-sold an investment by Carey Pensions to seek advice as soon as possible.”
If you think you have been mis-sold a SIPP by Carey Pensions, get in touch with our expert team of solicitors today to find out how we can help.