European Pensions Management Ltd (EPML) formally entered into special administration regime (SAR) insolvency proceedings on 21 June 2016.
Further to EPML entering Special Administration on 21 June, the Special Administrator has been working closely with the FCA to ensure a smooth sale of the SIPP and ISA books to provide continuity of service to the customers. In summary:
- EPML's SIPP and SSAS business has been sold to Suffolk Life Pensions Ltd (part of the Curtis Banks Group)
- EPML's ISA business where Saxo is party to the contract has been sold to Saxo Capital Markets Ltd (part of the Saxo Group)
- The remainder of EPML's ISA business has been sold to The Share Centre Ltd.
Customers should expect contact from the relevant firms in the very near future who will provide an update on the process and details on who to contact with queries.
Having reached an assessment that it was no longer solvent, EPML made an application to the court to formally initiate insolvency proceedings under SAR.
EPML has approximately 6,000 customers.
The joint special administrators are Adam Stephens, Finbarr O’Connell, Henry Shinners and Gregory Palfrey of Smith & Williamson LLP.
The special administrators will contact all affected customers in due course.
Client money and book of business
It is understood that the majority of client money is in place as required, but the special administrators will be able to confirm this once their client money assessment is complete.
The sale of the firm’s book of business to another self-invested personal pensions operator and ISA manger is being considered - if this is appropriate and where it will provide continuity of service to the EPML clients.
If EPML’s book of business is not sold, the special administrators will return as much client money to clients as possible, as quickly as possible.
If the assessment of client money results in EPML clients not having their money returned, they may have access to the Financial Services Compensation Scheme (FSCS), depending on their individual circumstances.
If EPML clients require more information about how they will be affected, they should visit the Smith & Williamson website, email [email protected] or call 020 7131 8824.
Special administrators regime
The SAR was introduced by the Government in 2011 to help resolve situations where investment firms, which hold client money and/or assets under our CASS rules, fail.
The SAR process has a number of objectives; one of these is to ensure money is returned to customers as soon as is reasonably possible.