Validity of 1,500 Berkeley Burke claims due to be announced by FSCS.
Updated: Jul 17, 2020
Investigations by the Financial Services Compensation Scheme are underway as they look for validity in the claims that have been submitted against Berkeley Burke. The FSCS will announce shortly whether payouts will be made to investors.
There have been over 1,500 claims received at the lifeboat scheme against Berkeley Burke to date. According to an update on the FSCS website, they have been working closely with Berkeley Burke's administrators and have received the due diligence files.
Once these documents have been reviewed by the FSCS, they will be able to determine whether the SIPP provider owes a civil liability, in other words, whether a UK court would hold the failed firm responsible for a customer's losses.
Once it finds this out it will be able to announce whether there are valid claims against Berkeley Burke.
In September, the directors of Berkeley Burke SIPP Administration Limited put the company into administration due to no longer having the financial ability to defend redress claims made against it.
Hartley Pensions purchased the SIPP arm of Berkeley Burke out of administration in a pre-pack deal. Hartley have acquired a number of client books from troubled SIPP providers in recent years.
It is still unknown how much Hartley paid for the client book.
Last year, Berkeley Burke SIPP also dropped it's appeal against a Financial Ombudsman Service decision from 2014. The FOS has ordered them to compensate a client after failing to carry out adviser-style due diligence on his investment.
The Court of Appeal decided to let Berkeley Burke appeal the decision in February after it said the decision was potentially one of "considerable and wider importance within the industry and for customers". But it was dropped in October because of a lack of funding.
In a separate post, the FSCS gave an update on its investigation into troubled SIPP provider Pointon York.
The FSCS has received 71 claims against Pointon York to date.
The information in this article was sourced from: https://www.ftadviser.com/pensions/2020/01/24/fscs-looking-into-validity-of-1-500-berkeley-burke-claims/
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