FOS favours Pathlines Pensions SIPP clients in first post-rebrand cases

SIPP operator failed to carry out due diligence, FOS finds

Jen Frost
clock • 2 min read

The Financial Ombudsman Service (FOS) has told Pathlines Pensions UK to compensate a further trio of SIPP clients over pensions transfers into high-risk “esoteric” investments.

The decisions mark the first upheld rulings since Pathlines Pensions, formerly London & Colonial, rebranded late last year following a split from STM Group. The ombudsman found that Pathlines Pensions failed to carry out appropriate due diligence on investments – ranging from carbon credits, to overseas property, to self-storage units – before allowing them to be held in its SIPPs. The FOS decision referenced the Adams v Options judgment, in which an appeal court confirmed in 2021 that SIPP provider Carey Pension (now Options) was liable to repay a member who was advised by an unregul...

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Jen Frost
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Jen Frost

Editor at Professional Adviser

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