“If this occurs, it will have a real and significant impact on the value of your pension scheme.”
The email was roundly dismissed and discredited, but two years later, following lengthy investigations from FT Adviser, clients told us they have indeed been facing significant administration costs, barred from transferring out, and faced obstacles in getting hold of their money.
Since then clients have been in limbo as to how and when they would be able to transfer their funds.
FSCS intervention
In February 2024, the FSCS provided funding to allow Hartley Pensions’ administrators to implement an exit strategy and start transfers out for thousands of customers.
The lifeboat scheme paid this funding into a trust account which will be used by the administrators, meaning Sipp members will not be charged the exit and administration charge that was originally proposed.
The FSCS declared Hartley Pensions in default so it was able to pay out the compensation.
While the company is in default so compensation on the exit charges can be paid, the FSCS has not opened or received individual claims against Hartley Pensions.
At the beginning of the year, the FSCS U-turned on its previous decision and said it would protect Hartley Sipp members by paying compensation for the exit and administration charge.
In December, as reported by FT Adviser, the FSCS said it did not have enough evidence and said the EAC would not be protected under its rules, but it U-turned on this decision.
The 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.
FT Adviser reported in December that this charge could amount to as much as £37mn. The administrators have said this would be to cover work arranging transfers out for the 16,741 Sipp schemes.
amy.austin@ft.com
