Mis-sold SIPP claims had piled up against the firm, with the FOS now looking at a £600,000 compensation bill.
SIPP provider Heritage Pensions have this week gone into liquidation after a flurry of upheld mis-sold SIPP claims. The SIPP firm sought insolvency after a number of decisions from the Financial Ombudsman Service (FOS) went against the company. The FOS was quick to criticise Heritage over a series of judgements.
One telling example was the case of “Miss C” who lost a staggering £280,000 when her defined benefit pensions were transferred into a SIPP, investing in high-risk, non-mainstream investments.
The investments included Caribbean property, carbon credits, green plantations, and farmland in South America and Europe. It is believed that Miss C has lost all of her money after these investments have failed. Miss C, 49, had planned to retire at 60. She was advised by a financial adviser to transfer her secure DB pension into “illiquid, esoeteric, investments held within a SIPP.
Who were Heritage Pensions?
Heritage Pensions Limited (trading as Heritage) was a SIPP operator authorised and regulated by the FCA. On 17th March 2022, the directors of Heritage appointed Paul David Williams and Edward Robert Bines of Kroll Advisory Ltd (Kroll) as joint liquidators. They are qualified insolvency practitioners.
Why did Heritage Pensions fail?
Heritage was unable to pay the compensation due from the FOS final decisions on a number of mis-sold SIPP investment claims. The decisions were handed down against them due to a lack of due diligence completed by the firm prior to taking on some investments in its SIPP.
Based on the insolvency advice, the directors of Heritage recognised the firm was insolvent and made the decision to place the company into liquidation.
What has happened to my Heritage Pension?
The sale of Heritage’s SIPP book happened on 18th November 2021. This was to PSG SIPP who are an FCA authorised and regulated SIPP operator. If you had a SIPP with Heritage, you should have received information on this transfer. Heritage stopped administering any personal pension schemes at this time, so customers who held a Heritage SIPP should not be affected by the liquidation.
What to do if you’ve been mis-sold a SIPP by Heritage Pensions
There are options open to you if you believe you have been mis-sold a SIPP investment by Heritage Pensions. The Financial Services Compensation Scheme (FSCS) is now open to all Heritage clients to file claims against the firm. The FSCS are now investigating if these claims are valid.
The FSCS protects pension customers when authorised firms fail, and pay compensation of up to £85,000 per claim.
How Can ClaimExperts.co.uk help?
While you are entitled to contact the FSCS yourself, for free, our panel of expert mis-sold SIPP solicitors can also help with a potential claim. Our panel boast years of experience in dealing with both the FSCS and the FOS for claims of mis-sold pensions and investments.
If you would like our panel to check your eligibility or a Heritage Pension compensation claim, get in touch today. Our panel work on a No Win, No Fee basis, and can guide you through your potential claim.
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