The UK’s Financial Services Compensation Scheme (FSCS) has concluded its investigation into The Lifetime Sipp Company and declared it to be in default.
This means that the company is unable to pay claims made against it.
The scheme said that its investigations focused on the firm’s practices and how they were carried out before allowing clients to make investments under their pensions.
It found that the level of due diligence exercised by the firm was not enough and it is allowing Lifetime customers to file claims against the company.
Around 400 clients have been affected, some of whom have already complained to the FSCS and their claims are in the assessment process, the scheme said.
One in many
Lifetime is the latest company to be declared bust by the lifeboat scheme.
On 12 June, Smith & Williamson was named as the administrator of GPC Sipp, after the firm was heavily criticised for placing client pensions in high risk and non-standard investments which ended up becoming illiquid.
Additionally, in May the FSCS declared eight other firms, including six wealth and advisory businesses, in default.
They are:
- Phil Ogden Financial Planning (Northants)
- GGC Independent Financial Advice (Cumbria)
- The O’Rourke Partnership (Merseyside)
- Premier Wealth Managers (Renfrew)
- Larksway Investments / City Professionals / Larksway Insurance / Crossbrook (Oxford)
- Wealth Rapport (Exeter)
