An investigation by the Financial Conduct Authority (FCA) into Greyfriars Asset Management (GAM) Self-Invested Personal Pensions (SIPP) schemes led to the company being hit with a Section 166 notice. This is also known as a ‘skilled person review’.
The ruling followed claims from investors that their SIPPs are now worth significantly less than they once were, costing investors thousands of pounds.
Funding Restrictions on Greyfriars Asset Management
The restrictions were put in place by the FCA in November 2016. They state the company is now unable to accept any new client money or custody assets.
Despite these restrictions, the FCA told Greyfriars Asset Management it is still able to provide pension administration. It can also provide safeguarding for its current clients.
It has been alleged that these schemes were mis-sold and should have only attracted investment from high net worth individuals who are able to take on significant financial risk.
A number of funds have been found to have been significantly affected by the investment being put into unregulated overseas property-based bonds.
This has led to a massive reduction in the value of the SIPPs with at least one of the investments undertaken by GAM going into administration.
Recommending High-Risk SIPPs
Funds thought to be affected include The Resort Group, Lanner Car Parks Fund, The Olmstead Series, ABC Corporate Bonds and the Urban Student Property Fund. At APJ we always encourage people to only invest in funds which are right for them.
Overseas SIPPs are usually only right for high net worth individuals. We would encourage investors to carry out due diligence before potentially investing in an unsuitable fund.
For many investors, overseas funds present a risk which is way beyond what they should be looking to take on.
Have you invested in one of these funds, and think you may have been mis-sold a scheme? Please get in touch with one of our expert advisors today who will be happy to offer advice.