The Monetary Providers Compensation Scheme faces a payout of as much as £124m after declaring collapsed SIPP and SSAS agency Rowanmoor as failed.
The declaration of failure opens the FSCS doorways to compensation claims being paid to ex-Rowanmoor purchasers.
The FSCS says it has to date obtained 1,464 claims associated to Rowanmoor – every topic to a most compensation payout of as much as £85,000.
If every declare is awarded the utmost compensation payout the invoice for present claims would prime £124m.
The FSCS says it’s unable but to place a determine on the entire value of claims and continues to be assessing prices.
Rowanmoor went into administration in the summertime of 2022 after a string of complaints to the Monetary Ombudsman Service.
Sipp and SSAS agency Alltrust acquired Rowanmoor Private Pensions Restricted (RPPL) in December 2022.
RPPL, a serious SIPP and SSAS supplier, administered 4,000 SIPPs and 800 Household Pension Trusts with a complete funding worth of £1.5bn.
Rowanmoor Private Pensions was beforehand a part of Embark Group however was floated off as a standalone enterprise final 12 months when Lloyds Banking Group purchased the Embark enterprise for £390m.
The Monetary Providers Compensation Scheme has been investigating RPPL for many of this 12 months.
The FSCS confirmed final 12 months that it had already paid out on claims towards failed IFAs who “misadvised” purchasers in relation to their Rowanmoor SIPP.
Lots of the instances coated the due diligence utilized by Rowanmoor on funding gross sales by a regulated recommendation agency and an appointed rep working with the corporate. The recommendation companies bought investments in a Cape Verde-based group to be included in purchasers’ SIPPs.
In line with earlier FCA statements, RPPL obtained quite a few complaints about, “historic, high-risk non-standard property” and for not finishing up “enough” due diligence earlier than accepting these property into clients’ SIPPs.
• In a separate deal, SSAS agency WBR Group acquired the staff, purchasers and property of Rowanmoor Govt Pensions Restricted’s (REPL) guide of three,500 small self-administered schemes (SSAS), for an undisclosed sum.