UK-based Sipp firm Corporate & Professional Pensions Limited has gone into administration, the Financial Conduct Authority (FCA) announced.
The FCA-regulated business appointed Adam Stevens and Nick Myers of Smith & Williamson as joint administrators on 1 February 2022.
Stevens and Myers will write to clients of the firm within seven days, but if customers have not received any communications from the administrators, the watchdog urged them to contact Smith & Williamson.
Existing Corporate & Professional’s pensions can continue to operate and accept contributions, the regulator added, as the Sipp provider is an authorised firm. In the meantime, the administrators will look for a different operator to takeover.
The FCA has also warned clients to “remain alert to the possibility of fraud” as some may leverage the current situation to take money from them.
Corporate and Professional Pensions was forced to enter administration as it was “unable to pay Financial Ombudsman Service final decisions related to the due diligence completed by the firm prior to taking on some pension investments”, the FCA said.
After seeking advice from Smith & Williamson, the firm decided to go into administration.
From this moment onwards, the Financial Services Compensation Scheme (FSCS) will also investigate whether there may be any claims which meet its qualifying conditions for redress – up to £85,000 ($114,145, €102,026).
Smith & Williamson’s Stevens said: “Our objectives as administrators are:
- Rescuing the company as a going concern; or,
- Achieving a better result for the company’s creditors as a whole than would be likely if the company were wound up (without first being in administration); or,
- Realising property in order to make a distribution to one or more secured or preferential creditors.
“In line with these objectives, the joint administrators are continuing to trade the business whilst pursuing a sale of the company’s business as a going concern. All existing employees have been retained as part of this process”.
International Adviser contacted Corporate & Professional Pensions for comment, but the firm did not respond in time for publication.