£95m has been paid out to GPC Sipp clients by the FSCS.
GPC Sipp clients have been compensated by the Financial Services Compensation Scheme £95m after holding unregulated assets in a Self-Invested Personal Pension with the firm.
The claims were brought against the IFA's that had advised these clients to transfer their pension into a Sipp with GPC and invest in high risk assets. These assets have now failed and GPC Sipp are now in administration.
One of the investments was Harlequin Properties, a luxury hotel development which was expected to cost around £400m. Unfortunately, this development was never built.
At current, the FSCS has paid out on 2,606 claims, the majority of these claims
were brought between 2014 and 2019, however, some date back to as far as 2004.
In 2015 the claims peaked as 1016 were received and 944 were paid. In 2016, 519 were received 566 were paid.
The FSCS said that they would take on a further 500 claims which are currently at the Financial Ombudsman Service following GPC Sipp entering administration on 12th June 2019 as a result of the problems clients were having with the Sipps.
The firm is also facing legal claims from a group of over 140 clients, GPC Sipp have stated they are contesting Fos cases and legal action against them.
The FSCS are deciding whether they are going to take claims against the company directly, following their invitation to claimants to come forward last week.
Initially, the FSCS will need to establish whether GPC Sipp is liable for the losses of clients and then officially declare it in default.
If you have a Sipp with GPC Sipp that is invested in schemes and developments that have failed, you may be able to recover your losses. The Claims Bureau can assist you in submitting your case to the FSCS and guide you through the process.
If you would like more information please visit www.gpcsipp.com
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Information in this article has been sourced from https://www.ftadviser.com/pensions/2019/06/21/fscs-pays-out-95m-to-gpc-sipp-clients/?utm_campaign=FTAdviser+news&utm_source=emailCampaign&utm_medium=email&utm_content=