FSCS accepting claims following SIPP firm Guinness Mahon declared default
The Financial Services Compensation Scheme (FSCS) is now accepting claims from the SIPP provider Guinness Mahon after falling into administration due to a number of consumer complaints about the high-risk non-standard investments and complete lack of due diligence which was not carried out prior to accepting the investments into the SIPPs.
Eligible claimants can claim up to the limit of £85,000 through the FSCS.
As of February 17th, Adam Stephens and Nick Myers were appointed joint administrators of Guinness Mahon Trust Corporation Limited but immediately sold the SIPP business and certain assets to Hartley Pensions Limited for an unknown sum which will see 4000 SIPPs eventually transferred over to Hartley with a total investment value of £300m.
The FSCS’s decision from September 2018 ruled in favour of five clients who had invested their pensions in unregulated assets through a Guinness Mahon SIPP but lost close to £100,000. It was discovered that the provider had opened the SIPPs after these clients were introduced by Avacade Limited who are currently involved in a £86m court battle with the regulator.
The Financial Ombudsmen had found that Avacade then cold-called clients and advised they transfer their pensions into unregulated schemes such as Ethical Forestry Ltd.
After receiving complaints from clients, Guinness Mahon sought advice about its liabilities, but the directors were advised that the company was insolvent and therefore should be placed into administration to provide protection for the clients and creditors.
Assets held within each Guinness Mahon SIPP will transfer to a Hartley SIPP unless clients contact Hartley to get advice on other options.
Information in this article was sourced from https://www.ftadviser.com/personal-pension/2020/02/19/fscs-opens-door-to-claims-as-sipp-sold-out-of-administration/
If you have been affected by the services offered by Guinness Mahon and would like to discuss how we may be able to help give us a call on 01903 868251.