• Free Initial Assessment: No-Obligation Chat

FSCS moves to put SIPP providers on the target list

SIPP Provider

People who have suffered from a mis-sold SIPP will be pleased to see that the Financial Services Compensation Scheme (FSCS) are considering holding SIPP Providers liable for the mis-sold SIPPS as well, not just the investor’s Financial Advisor.

Until a recent review, the responsibility for important pre-investment checks for client suitability has sat almost solely on the shoulders of the investor’s financial advisor, with SIPP Providers taking no responsibility for pension mis-selling, despite taking the client’s money.

But this review of FSCS practices seems to put SIPP Providers on the hook too, and reports in financial publications such as FTadvisor suggest that these changes may have occurred due to spectacular and high-profile cases such as the Harlequin Property scandal – still under investigation by the SFO (Serious Fraud Office) with support from Essex Police.

Harlequin has been a nightmare for huge numbers of UK investors, many of whom have been using Spencer Churchill Claims Advice to pursue their claim for compensation through the FSCS against their IFA, and now their SIPP Provider too!

Investors put about £400m collectively into the Harlequin scheme to build around 3000 properties in sweet-spot locations like the Caribbean, but years later only a handful have actually been built, cause ROI rage amongst investors and prompting the SFO investigation.

SIPP Providers on the hook at last?

For many investors who have potentially been left out in the cold from incidents like Harlequin Properties, having SIPP Providers on the hook will be great news, especially for those who cannot claim their full investment from their IFA due to them no longer trading, and with the FSCS capping their compensation at £50,000.

In a FTAdvisor report on the subject, Ben Sear of Martin Redman Partners was quoted in support of placing more responsibility in the hands of providers – “[…] everyone wants to blame the advisor […] but providers are a check and balance. There are far more people on this gravy train.”

Alex Waters
30 March 2016
Share this post:
No Upfront Fees

Let’s Rewrite Your Financial Story

We are here to rewrite the book for you. 
And luckily we are pretty damn good at creating happy endings.

Money Hands

We are here to rewrite the book for you. And luckily we are pretty damn good at creating happy endings.


When you get let down by someone you thought you could trust, it can leave its mark on you, emotionally and physically.


We are committed to transparency and fairness in the way we conduct with clients, including how we charge for our claims services.

Speak to an expert today

We have decades of experience in helping people claim back money that is rightfully theirs. Whether you want to make a mis-sold pension claim, have questions about a mis-sold investment, or you’re just looking for some advice you can trust – we’ve got you covered. Reach out to our team today for a no-obligation, completely free chat. 

Call: 01204929929

Office Hours:

Monday: 8:00am–6:00pm
Tuesday: 8:00am–6.00pm
Wednesday: 8:00am–6:00pm
Thursday: 8.00am–6.00pm
Friday: Office Closed

This field is for validation purposes and should be left unchanged.