Hartley Pension clients who have toxic assets in their self-invested personal pensions are facing yet more delays as there is "no timeline" for their transfers, they have been told.
A letter sent by administrators UHY Hacker Young this month (September 9) was unable to give Hartley Pension clients with toxic or impaired assets a set deadline for when they would be contacted regarding transfers.
The letter stated: “We are liaising with the FCA and FSCS regarding the impaired and/or toxic assets.
“While we do not currently have a timeline for when these discussions are expected to conclude, we anticipate issuing client asset statement to Tranche 6 clients who the joint administrators believe holds toxic/impaired assets within their Sipp in the coming months.”
“We will contact you regarding your Sipp and next steps in the coming months, and thank you for your continued patience.”
According to the administrators, toxic and/or impaired assets includes assets which:
- the FSCS have previously paid out compensation;
- is a failed investment (such as shares in a company which has failed;
- has little or no value;
- has some other complexity which is limiting the joint administrators ability to transfer your asset.
Even though clients may be receiving compensation from the FSCS it does not mean the asset has been removed from the Sipp.
Until an agreement is reached between the joint administrators and FSCS the Sipp will remain open and clients will continue to receive communications regarding the process.
If a client's Sipp contains any other asset, as well as the impaired/toxic asset, they will continue to be charged an annual administration fee.
The letter added: “The joint administrators are in discussion with the FSCS regarding a mechanism to address any partial balance of your annual administration fee that has already been charged to your Sipp, following the transfer of your assets.”
Morgan Lloyd, a pensions management and administration business, was appointed to receive Hartley transfers in June after a period of due diligence by administrators UHY Hacker Young and interaction with the FCA.
It came after a period of frustration for clients as thousands had been trapped for more than two years in Hartley's Sipps, after Hartley Pensions went into administration.
The firm first went into administration at the request of the Financial Conduct Authority back in July 2022.
Administrators UHY Hacker Young previously set out how transfers would happen in tranches, with the most simple investments going first.
amy.austin@ft.com
