FSCS to step in and fund costs for Hartley Pension SIPP exit strategy

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The FSCS explained in a new update this week, that it will compensate customers by funding the costs of the Joint Administrators’ exit strategy for Hartley SIPP customers.

This is a 180° turn on their previous stance, as they have previously said that they would not pay the charges.

This comes after Hartley Pensions Ltd, who are in administration, and the FSCS finalised an agreement with the Joint Administrators this week.

FSCS to step in

Under the agreement, Hartley Pension customers will not need to make a claim for the compensation to be paid, and the Joint Administrators will communicate with customers about transferring to another SIPP provider and receiving their payout.

FSCS has paid the compensation into a trust account which will be used by the Joint Administrators for this purpose. This means that the Joint Administrators will not need to charge SIPP members the exit and administration charge that was originally proposed.

The funding provided by FSCS will allow time for the Joint Administrators to implement an exit strategy which includes transferring SIPPs to new providers. Customers will not need to fund these costs or make an application to FSCS for this compensation.

I’m a Hartley’s SIPP member – what should I do next?

Hartley’s SIPP members do not need to do anything at this time.

The FSCS have declared Hartley Pensions as failed and published the FCA’s determination paper on the website. This sets out how the FSCS will be subrogated to a customer’s rights and claims against Hartley Pensions and any third party involved in, or connected with, the matters giving rise to the customer’s claim for compensation.

Although Hartley Pensions have been declared failed, FSCS will not be open to claims for the time being. With this being said, the FSCS recognise that it is possible that SIPP members may have claims against Hartley Pension for matters other than the costs of the exit strategy.

The FCA has said that by delaying opening the claims process at the FSCS will allow them and the Joint Administrators to prioritise the work needed to get the transfer process underway.

However, there will be an opportunity for customers to raise claims against Hartley for matters other than the costs of the exit strategy in the future. A further announcement about this will follow in due course.

When can SIPP members transfer to a new provider?

The Joint Administrators should support Hartley Pension SIPP customers transfer to a new provider.

The Joint Administrators say they will be issuing communications to SIPP members in due course by setting out their proposed strategy and timelines for distributing and/or transferring client assets.

Customers can monitor the Joint Administrators’ updates here for further information on the progression of the administration.

FSCS to step in and fund costs for exit strategy for Hartley Pension SIPP customers

The FSCS explained in a new update this week, that it will compensate customers by funding the costs of the Joint Administrators’ exit strategy for Hartley SIPP customers.

I’m a Hartley’s SIPP member – what should I do next?

When can SIPP members transfer to a new provider?

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