FSCS opens door to Berkeley Burke claims

The FSCS yesterday (1 April) declared Berkeley Burke SIPP Administration Ltd a failed firm and opened the door to claims that could eventually top £150m. The Financial Services Compensation Scheme said it would now accept a queue of claims against the firm which was went into administration on 18 September. The FSCS says it is aware that a number of IFAs recommended customers to transfer their pensions into a Berkeley Burke SIPP. After the transfers customers had their pension funds placed in “high-risk, non-standard investments” or UCIS. Some of these investments have since become illiquid, said the FSCS, and cannot currently be sold or traded. The FSCS said that its investigations have focussed on the levels of due diligence Berkeley Burke carried out before allowing customers to make specific investments via their pensions. Claims will now be passed to the FSCS processing teams for assessment. The FSCS said to pay claims it had to be certain that Berkeley Burke SIPP Administration Ltd had “failed in its due diligence.” In November Financial Planning Today reported that the FSCS had received 733 claims against Berkeley Burke Sipp Administration Limited (BBSAL) and the Financial Ombudsman Service was in the process of transferring customer claims against BBSAL to the FSCS. FSCS has already paid out £54m on approximately 1,400 claims against IFAs in relation to advice customers received to transfer their pension into a Berkeley Burke SIPP. There are a number of civil claims cases against SIPP operators under way in the High Court.

FSCS opens door to Berkeley Burke claims

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