FSCS faces £1.6m of SIPP claims in unauthorised introducer tie-up

Firm had passported into UK

Carmen Reichman
clock • 6 min read

The Financial Services Compensation Scheme (FSCS) is facing a number of claims in relation to a self-invested personal pension (SIPP) provider that was found to have failed in its due-diligence of an unregulated introducer.

Brooklands Trustees was held liable by the Financial Ombudsman Service (FOS) for losses totalling £1.6m from clients who had invested their pensions in an unregulated product, which later collapsed, through the company's SIPP. The clients had been referred to Brooklands by FCP Insurance Consultants, which was not authorised to advise on pension or investment business at home or abroad. They invested in the LM Managed Performance fund (LMMP), an Australian property fund that collapsed in 2013. Brooklands Trustees went into administration in July having arranged a 'pre-pack' sale of its...

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