Consumers who invested with failed provider Lifetime Sipp may face more issues securing compensation. This follows news of administrators suggesting it may take years to win a Sipp payout.
Lifetime Sipp payout
There could be as many as 2,000 creditors owed compensation. The creditors have so far made around £56m in claims. However, many of these people will be redirected to the Financial Ombudsman Service (FOS) or Financial Services Compensation Scheme (FSCS). As a result, many will recoup some of their investment through these services.
To date, the total assets recovered currently only amount to £716,000. Further investigations will be made to find out if more funds can be released.
While recovery is currently underway, the FSCS has stated that payouts will not be made to investors yet. They will now have to wait until the administrators pay an estimated £278,000 subrogation fee.
A spokesperson from the FSCS said: “Throughout this process we shall be liaising closely with the consumers, FOS and the FSCS. This may take a number of years to resolve and compensate creditors.
“The FSCS shall be subrogated for any compensation awards they make to the consumer. Therefore, they shall more than likely have the largest claim in the administration.”
Failed Schemes
The Lifetime Sipp company fell into administration earlier this year. This is a result of mis-sold and fraudulent schemes on the Sipp provider’s books.
One of the most controversial schemes offered by Lifetime Sipp is Harlequin Properties. The property scheme is thought to have lost investors around £390m. The FSCS and FOS are currently handling payouts. The scheme is also being investigated by the Serious Fraud Office (SFO). Hundreds of investors of the scheme have complained to the FOS. They are currently in the process of reclaiming their investment.
Did you invest in a pension scheme through Lifetime Sipp? How about a Harlequin Property scheme? You may have been mis-sold. Our team of experts can offer support and advice on reclaiming your lost investment.