Hartley Pensions Ltd

Latest updates

• 01 Aug, 2024

  In our last update we referred to the Joint Administrators’ update that set out how they had divided Hartley’s SIPP customers into groups (or ‘tranches’). They expected to write to customers between April and June and provide them with their options and client asset statements.

  We are aware that the Joint Administrators have issued further updates during June and July. The 12 June update provides the latest information on each of the tranches and the revised dates when clients can expect to hear more. The 17 July update contains more details about potential transfers to Morgan Lloyd.

  We understand that client asset statements were sent to customers in tranche 2 (which is most customers with less than £10,000 of cash and assets in their SIPP) on 24 May. We understand that further groups of customers are due to be sent their statements shortly.

  Tranche 6 contains customers who hold impaired assets within their SIPP and this will be the final tranche to be contacted. The Joint Administrators’ 17 July update sets out at a high-level their plans for dealing with impaired assets, as far as possible prior to any transfer or closure of a SIPP. You can read all the updates on the Joint Administrators’ website.

  FSCS has already funded the Joint Administrators’ exit strategy on behalf of Hartley SIPP customers and there’s no need for customers to make a claim to FSCS for this compensation to be paid. FSCS currently remains closed to customer claims in relation to other matters. We will update this page with any announcements regarding opening to other claims. 

  FSCS will continue to work closely with the Joint Administrators as they implement their exit strategy, but customers should monitor the Joint Administrators’ updates here for further information on the progression of the Administration.

   

• 04 Apr, 2024

  The Joint Administrators will be issuing communications to Hartley’s SIPP customers from April through to June that set out their proposed strategy and timelines for distributing and/or transferring client assets.

  FSCS will continue to work closely with the Joint Administrators as they progress their exit strategy.

  Customers can access the latest update here for details on when to expect contact from the Joint Administrators in relation to their individual SIPP.

• 22 Feb, 2024

  Further to our last update, FSCS has now finalised an agreement with Hartley Pensions Ltd’s Joint Administrators that allows compensation to be paid for the benefit of Hartley SIPP customers.  

  Hartley SIPP customers do not have to make a claim to FSCS for this compensation to be paid.

  What are the arrangements for this payment?

  Under the agreement, FSCS will compensate customers by funding the costs of the Joint Administrators’ exit strategy for Hartley SIPP customers. FSCS has paid the compensation into a trust account which will be used by the Joint Administrators for this purpose.  This means that the Joint Administrators will not need to charge SIPP members the exit and administration charge that was originally proposed.

  FSCS has now paid the compensation directly to the trust account. The funding provided by FSCS will allow time for the Joint Administrators to implement an exit strategy which includes transferring SIPPs to new providers. Customers will not therefore need to fund these costs or make an application to FSCS for this compensation.

  The compensation addresses the costs of completing the Joint Administrator’s exit strategy.  We understand that the annual management charge will continue to be taken by Hartley to cover the day-to-day management of the SIPPs.

  When can SIPP members transfer to a new provider?

  This will be a matter for the Joint Administrators.  Following the payment of compensation, the Joint Administrators now have funds available to allow them to proceed with their exit strategy.

  The Joint Administrators will be issuing communications to SIPP members in due course setting out their proposed strategy and timelines for distributing and/or transferring client assets.

  FSCS will continue to work closely with the Joint Administrators as they implement their exit strategy, but customers should monitor the Joint Administrators updates here for further information on the progression of the administration.

  What are the next steps?

  Hartley’s SIPP members do not need to do anything at this time. FSCS has declared Hartley in default and published our determination paper on our website which sets out how FSCS will be subrogated to a customer’s rights and claims against Hartley and any third party involved in, or connected with, the matters giving rise to the customer’s claim for compensation. 

  Although Hartley will be in default, and it is possible that SIPP members may have claims against Hartley for matters other than the costs of the exit strategy, FSCS will not open to claims for the time being.  This will allow us and the Joint Administrators to prioritise the work needed to get the transfer process underway.  There will be an opportunity for customers to raise claims against Hartley for matters other than the costs of the exit strategy in the future. A further announcement about this will follow in due course.

  How will this be funded?

  Compensation costs will be funded through FSCS’s usual industry levy. Costs for failed SIPP operators fall to the Investment Provision class. We’ll provide more detail in our next published levy forecast in the spring.

• 14 Feb, 2024

  In our previous statement of 29 January 2024, we confirmed FSCS can protect Hartley SIPP customers. Over the last two weeks, FSCS and the Joint Administrators have made significant progress in agreeing arrangements and we are working towards making payment by the end of February 2024.

  In the meantime, if customers have any queries regarding the administration of their SIPP, please contact hartleypensions@uhy-uk.com.

  We will share a more comprehensive update on the FSCS compensation payment over the course of the next week.

• 29 Jan, 2024

  FSCS will protect Hartley SIPP members by paying compensation for the Exit and Administration Charge (EAC).

  Following our previous statement of 1 December 2023, as part of FSCS’s ongoing investigation into Hartley, we’ve obtained and considered further evidence. We’ve decided that this evidence is sufficient for FSCS to determine that the EAC can be protected under our rules.

  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.

  Why has FSCS’s position changed?

  In our previous update, we said that based on the available evidence at that time we could not protect SIPP members for this charge as we did not believe there was a protected claim under our rules. 

  FSCS must make decisions based on the information available to it at any given time. The further evidence obtained by FSCS during January 2024 has now allowed us to reach the view that protected claims do exist for all Hartley SIPP members who were due to be charged the EAC directly.

  What are the next steps?

  FSCS is working closely with the Joint Administrators to arrange the compensation payment.

  Hartley’s SIPP members do not need to do anything at this time. We will provide a further update once we have confirmed these payment arrangements.

• 01 Dec, 2023

  We are aware that the Joint Administrators of Hartley Pensions are proposing to seek the approval of the court to charge SIPP clients an Exit and Administration Charge. This charge will cover the costs of the administration of the firm.  

  FSCS is not able to pay compensation to Hartley Pensions’ SIPP clients for the Exit and Administration Charge, as we do not consider that this charge would be a protected claim under our rules. This is because:   

  • FSCS only has the powers provided to it under the Financial Services and Markets Act 2000 (FSMA) and can only pay compensation in accordance with the COMP rules which are set by the FCA. There is no general power under FSMA or the COMP rules for FSCS to fund the continuing costs of running an insolvent SIPP provider.
  • Under FSMA, FSCS must consider: 
    • Whether a customer has a claim against a firm which they could have successfully sued the firm for in court (had it not become insolvent); and 
    • The additional requirements in the COMP rules such as whether a customer is eligible, whether the claim is connected to a regulated activity and the limits on the amount of compensation FSCS can pay. 
  • Although the Joint Administrators have given FSCS some examples of alleged administrative failings by Hartley in relation to some of its customers, it is not clear to us that a court would find that these failings would be a breach of a regulatory rule, contractual term or duty of care owed to the customer or that they directly caused a loss to the customer.  
  • FSCS also does not consider that the damages a court would award in relation to Hartley’s alleged failings would include the Exit and Administration Charge, because there isn’t a close enough link between the actions of the firm and the proposed charge.  

  This means that FSCS cannot be satisfied that the requirement for a protected claim in the COMP rules has been met.  

  We understand this will not be what Hartley’s customers will have been hoping to hear. If we have any further updates, we will publish them on this page. 

  Will FSCS’s position change if Hartley enters liquidation? 

  If Hartley is placed into liquidation, either compulsory or voluntary, FSCS does not consider this will change anything or give rise to protected claims in relation to the Exit and Administration Charge.  

  We also understand that in the event of a liquidation the SIPP schemes might be deregistered by HMRC, which would trigger a tax charge for individual customers. FSCS would not be able to pay compensation for these costs either, for the same reasons set out above.  

  We have set out a more detailed analysis of the current position for those who wish to understand more about FSCS's rules and how we have applied them. This is available here (pdf 0.2MB).

• 25 Nov, 2022

  We’re aware of a recent communication sent to members of the pension schemes – administered by Hartley – by Tony Flanagan, a director of Hartley and the director of the companies that act as trustee of the Hartley SIPPs.

  We are also aware that the FCA has issued a statement on its website.

  We can’t comment on those discussions between the firm and FCA or Joint Administrators. We are still working closely with the joint administrators to understand whether there are any protected claims that would allow us to pay compensation. At this time, we are not open to claims against Hartley Pensions.

  If you have a claim with us 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 failure) we will continue to process that claim.