Hartley Pensions’ joint administrators have issued communications to self-invested personal pension (SIPP) clients about their proposed strategy and timelines for distributing and/or transferring assets.
The FSCS said in a short statement on 4 April that it will continue to work closely with the joint administrators as they progress their exit strategy.
Peter Kubik and Brian Johnson of UHY Hacker Young LLP, as joint administrators said in their statement on 2 April:
“As you may be aware from the latest client communications released on 28 February 2024, the Company is now in receipt of funds from the Financial Services Compensation Scheme (”FSCS”) which will be used to cover the costs associated with an orderly transfer out of clients’ SIPPs to new appropriately regulated operators or otherwise settling their accounts via a return of assets.
“For the avoidance of doubt, the funding received from the FSCS has allowed the Company to administer the transfer out process without the need to charge clients an exit and administration charge. We write to provide you with an update on this process.
“If you hold a SSAS with the Company a separate update will be issued shortly in this regard.”
The administrators further said Clients will be contacted regarding the transfer out process by post only.
They also said due to the difference between the nature of clients’ assets held within their SIPPs and the different contractual relations for each SIPP Scheme, the JAs have grouped categories of clients into tranches to streamline the transfer out process.
The options given to each client with regards to the transfer out process will depend on the tranche that each client falls into.
The options available to each SIPP member will be set out in an individual letter which will be posted to their home address.
Given the company’s substantial client base it is not feasible to transfer all client SIPPs at the same time or on an ad hoc basis at the individual request of a client, the administrators said.
Therefore, the transfer of the SIPPs will be prioritised according to the tranches and month dates set out below.
1 White label SIPP clients April
2 Small pot clients with less than £10,000 in cash
and/or asset value in their SIPP, are of
pensionable age and no impaired assets
April
3 Deceased SIPP clients May
4 Clients to be transferred by way of a bulk
transfer
May
5 Clients being transferred out individually June
6 Clients with impaired assets June
The full statement can be found here.
