Hartley Pensions Limited enters administration

The Financial Services Compensation Scheme (FSCS) has confirmed that its finalised an agreement to fund the costs of the exit and administration charge (EAC) that the Joint Administrators had proposed to levy on Hartley Pensions customers.

This means customers will not need to fund the EAC or make an application to FSCS for any money. It will be paid directly to the administrators to cover costs. See the FSCS website[2] for more information.

What will happen next?

In due course, we understand that the Joint Administrators will be issuing communications to SIPP members setting out their proposed strategy and timelines for distributing and / or transferring client assets.

See the Joint Administrators website[1] for more information.

The FSCS has today confirmed that it will pay the exit and administration charge that the joint administrators proposed to levy on Hartley Pensions Limited customers. 

Customers do not need to do anything at this time.

We welcome this step as it will reduce the impact of the administration on SIPP customers. We will continue to engage with all parties to ensure the best outcomes for consumers.

Any customers with questions should review the FSCS website for further information[2].

All clients should remain alert to the possibility of fraud. If you are a client of Hartley Pensions and are cold called by someone claiming to be from Hartley Pensions, UHY Hacker Young LLP or any other company claiming to be involved in the administration, please end the call and call the joint administrators: 

• Email: [email protected] 
• Call: 0800 063 9113 (UK callers), +44 20 3282 8151 (international callers)

See more on how to protect yourself from the most common types of scams[3]. ScamSmart[4] pages on our website also provide advice on how to avoid investment and pension scams.

If your SIPP is currently in drawdown, this is not affected by the firm entering into administration. 

At the moment, Hartley Pensions is not accepting contributions from clients to be paid into their pensions. This will be kept under review and if this changes the joint administrators will contact any affected clients. You should not try to make payments into or transfer assets into your SIPP. If you do, they will be returned to you. 

Existing pension assets are currently unaffected by the firm going into administration. They are held by trustee firms, which are not regulated by the FCA and have not entered into insolvency. If this changes the joint administrators will contact any clients affected.

It is for the administrators to determine how the costs of the administration are met, which includes transferring customers’ SIPPs to alternative regulated SIPP operators. The administrators have applied to court to confirm they have the contractual right to charge the EAC.

As per our latest update, the FSCS has confirmed that it will pay the exit and administration charge that the joint administrators proposed to levy on Hartley Pensions Limited (HPL) customers.

The Financial Services Compensation Scheme (FSCS) is the compensation scheme for clients of UK authorised financial services firms and protects consumers when those firms are not able to meet protected claims against them. The FSCS has eligibility criteria in respect of the activities and the people who are covered and it can pay compensation up to a limit of £85,000 for claims relating to investment business.

The FSCS has worked to establish whether any losses meet the conditions for compensation. As per our latest update, the FSCS has confirmed that it will pay the exit and administration charge that the joint administrators proposed to levy on Hartley Pensions Limited (HPL) customers.

You can obtain further information about the FSCS on its website[5].

If you want to make a complaint, please speak to the joint administrators: 

• Email: [email protected][6]
• Call: 0800 063 9113 (UK callers), +44 20 3282 8151 (international callers)

For more information on the FSCS, please see 'is there FSCS coverage?' above.

If you have already referred a complaint to the Ombudsman Service, you don’t need to take any action at the moment. The Ombudsman and the FSCS will be working closely with the FCA and the joint administrators to agree an appropriate course of action. The Ombudsman Service will contact you in due course regarding the next steps. As per our latest update, the FSCS has confirmed that it will pay the exit and administration charge that the joint administrators proposed to levy on Hartley Pensions Limited (HPL) customers.  The FSCS will continue to update its website with any news or important developments regarding its investigations.

If you have a complaint with the FSCS against a different authorised firm (i.e. a financial adviser-relating to a product within a Hartley Pensions SIPP, or a SIPP which transferred to Hartley following the original provider’s default) the FSCS will continue to process that claim.

For more information on the FSCS, please see “Is there FSCS coverage?” above.

You do not need to use a claims management company (CMC) to make a claim against the firm or through the FSCS. CMCs may approach clients of Hartley Pensions offering help to bring claims against it. Be cautious if you are approached by one of these companies. 

For most consumers, there is no benefit to using a third party to make a claim. Any clients of Hartley Pensions who believe they have a complaint against the firm should contact the administrators in the first instance, using the below contact details: 

• Email: [email protected] 
• Call: 0800 063 9113 (UK callers), +44 20 3282 8151 (international callers)

Hartley Pensions Limited has sought professional insolvency advice and as a result the directors recognised it was insolvent and no longer able to operate outside of an insolvency process. Following this advice, the directors appointed Peter Kubik and Brian Johnson of UHY Hacker Young LLP as joint administrators. 

The FCA also requested that the firm go into an insolvency process in the interest of clients.  

At the time of failure, Hartley Pensions was subject to a number of FCA requirements. The requirements were imposed due to a number of serious operational, financial and regulatory issues that the firm was attempting to deal with and were intended to protect all of the firm’s clients.

We are in regular contact with the joint administrators who are looking at the options available, including the transfer of Hartley Pensions clients to another FCA regulated SIPP operator.  If this is not possible, the administrators will look to pursue other options aimed at transferring SIPPs or returning SIPP assets back to clients. 

Hartley Pensions also holds a number of SSASs (these are regulated by the Pension Regulator, not the FCA). The joint administrators will be in touch with further information on this if you have a SSAS with the firm.  

Although Hartley Pensions is in administration, it remains an FCA-authorised firm and is still subject to our rules. As explained above, Hartley Pensions is not currently accepting contributions into SIPPs/SSASs operated by it. You should not try to make payments into or transfer assets into your SIPP. If you do, they will be returned to you.  

The joint administrators will publish detailed guidance of the next steps for Hartley Pensions clients and creditors on a dedicated website[3].
 

Transfers out of your SIPP/ SASS may not be possible. Please speak to the administrators for further detail:

• Email: [email protected] 
• Call: 0800 063 9113 (UK callers), +44 20 3282 8151 (international callers)