Standard Life Sipp investors face wait for Catalyst compensation

A tax problem means Standard Life Sipp investors in the suspended ARM life settlement fund face an even greater wait for their Catalyst compensation to be handed over. There has been a hold up which could prevent the six month target for a decision on a claim being missed, The Financial Services Compensation Scheme said today. ARM life settlement fund marketing firm Catalyst Investment Group was placed in default by the FSCS last year.In a statement this morning, the FSCS said: "FSCS has been working with Standard Life to ensure that Standard Life Sipp members with eligible claims against Catalyst are not subject to any adverse tax liabilities. {desktop}{/desktop}{mobile}{/mobile} "This may occur if FSCS makes recoveries in relation to their claims and pays those recoveries directly to the members."FSCS is not able to pay compensation to any Catalyst claimant whose ARM investment is held in a Standard Life Sipp until the matter has been resolved."Unfortunately, this means that in some cases FSCS may not be able to meet its target of issuing decisions within six months of receipt of an application form, and we regret any inconvenience this may cause."As stated in our July update, when FSCS pays compensation for claims against Catalyst, it takes an assignment of a claimant's rights to pursue recoveries against Catalyst and any other party responsible for the loss. This is likely to include ARM Asset Backed Securities SA."A jointly written letter from FSCS and Standard Life has been sent to HMRC asking for clarification on the tax issues. A response is expected in October.Once this has come, FSCS and Standard Life will agree the approach for assessing affected claims.The FSCS added: "We will provide a further update on our website as soon we are able to. We thank you for your patience in this matter."

Standard Life Sipp investors face wait for Catalyst compensation

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