The exit and administration charge (EAC) is intended to cover costs, including the costs for customers to transfer to other regulated companies where possible, until Hartley’s administration is concluded. It could amount to as much as £37mn.
As previously reported by FT Adviser, at the end of last month (January 29), the FSCS U-turned on its previous decision and said it would protect Hartley Sipp members by paying compensation for the EAC, so that the administrators would not need to charge Sipp members, as was originally proposed.
UHY Hacker Young has applied to court to ratify an EAC the administrators would make against the assets clients hold within their Sipps. A court hearing date is set for February 29 and March 1.
With court proceedings ongoing and as clients desperately wait for a resolution to the mess at Hartley, there is certainly more to come out of this saga.
Ima Jackson-Obot is deputy features editor of FT Adviser
