PSG SIPP Limited under investigation – What it means for customers

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This week, the Financial Services Compensation Scheme (FSCS) announced that another self-invested personal pension scheme (SIPP) has been put under investigation.

An investigation into PSG SIPP Ltd (PSG) was launched on October 28 after the firm fell into administration earlier this month.

PSG SIPP Limited

Christopher Allen and Adam Stephens of Evelyn Partners have been appointed as joint administrators as the FSCS investigates whether any claims against the firm qualify for compensation.

Below we breakdown what this means for customers and what they should do next.

Why did PSG SIPP enter administration?

PSG SIPP is a wholly owned subsidiary of Donre Advisory Limited (Donre). Donre entered creditors’ voluntary liquidation in July this year, which led to the Financial Conduct Authority to put in place an asset retention requirement for PSG.

PSG SIPP’s directors decided to enter the firm into administration because of its potential liabilities from the assets it has invested on the Brite Pty platform in Australia – which controlled both PSG SIPP and Donre.

On 27 October 2023, the Australian Securities and Investments Commission (ASIC) froze the assets of Brite due to its financial position being unknown, as it failed to lodge with ASIC its financial statements and auditors’ report for the financial year ended 30 June 2022.

This had an impact on Brite’s capitalisation of Donre. With a reduction in its defined benefit transfer cases, the firm became loss making, resulting in capital issues and breach of its prudential requirements. Donre is now in creditors’ voluntary liquidation.

After receiving professional advice, PSG concluded that, should the liabilities crystallise, the firm would become insolvent.

How will the appointment of Christopher Allen & Adam Stephens of Evelyn Partners affect me?

Immediately following their appointment of the Joint Administrators , they completed a sale of PSGS’s SIPP Limited’s business and certain of its assets, including all SIPP schemes except for the Unity SIPP, to Alltrust Services Limited (‘Alltrust’). PSGS’s employees and directors have transferred to Alltrust as part of this transaction and their contact details will initially remain the same.

Simultaneous with the sale to Alltrust the joint administrators exchanged contracts with London & Colonial Services Limited (“London & Colonial”) for a transfer of PSGS’ Unity SIPP business, which is expected to complete by 15 January 2025 at the latest.

An agreement is in place with Alltrust whereby PSGS’s former staff will continue to administer the Unity SIPP until the sale to London & Colonial is completed.

What will happen to PSG SIPP now it is in administration?

Although PSG SIPP is in administration, it remains an FCA-authorised firm and is still subject to its rules

What does this mean for PSG SIPP customers?

Following the investigation, PSG SIPP customers, including Unity SIPP customers, can continue to contribute, withdraw and make investment decisions the same as before only their financial product is now with Alltrust. This is because a series of deals have taken place to ensure customers remain as undistributed as possible.

If you have an existing complaint against PSG SIPP or want to make a new complaint, read the sections below.

Financial Ombudsman Complaints against PSG SIPP

As well as issues involving Donre Advisory and Brite, several issues have been raised about the service received by PSG SIPP customers directly.

According to the Financial Ombudsman Service, six complaints have been made about the PSG SIPP since last year, involving various issues, including a delay in a transfer to a new provider which led to potential financial loss, and incorrect information being given to a customer which also led to a financial loss. Two of these claims were upheld.

If you believe you have lost money or were at risk of losing money due to errors made by PSG SIPP, you may be entitled to compensation.

Can I claim compensation?

If you have been affected or loss money due PSG SIPP falling into administration, contact Oakwood Solicitors today. We can offer you a free consultation and discuss whether we believe you may be entitled to claim compensation.

Why should I use Oakwood Solicitors Ltd?

We are a Regulated firm of Solicitors, with over 15 years’ experience in financial mis-selling claims. By using a solicitor who is a specialist in financial mis-selling claims you will ensure that you put your best case forward and maximise your chance of success.

You will be allocated your own experienced investment claims handler who will keep you fully informed throughout the whole process.

We take the hassle out of the claims process as we do all the hard work for you. We will complete all the necessary paperwork and obtain all the required documentation to support your claim.

We have seen numerous cases in the past where mis-selling victims have pursued a legitimate claim themselves, only to have it turned down due to a technicality or because key grounds have not been particularised.

We have successfully recovered in excess of £5 Million for our clients in the last 12 months.

You have a higher chance of success by working with a Solicitor, who will ensure that there are no technical grounds for turning down your claim and put you in the best possible position to receive what you are owed.