SIPP pensions provider faces legal challenge

Self-invested personal pension (SIPP) provider Carey Pensions is facing a legal challenge, centred on claims that it accepted SIPP payments without first undertaking due diligence. The case was brought by Solicitor Anthony Philip James & Co, on behalf of a client who had lost £30,000 via a Carey Pensions SIPP invested in Green Oil Australia, a company that went bust in 2013.

The client, Mr R, said he was introduced after a cold call. He took the matter up with the Pensions Ombudsman in 2015, receiving a ruling that he had been poorly advised and that it was a questionable investment for a SIPP. However, the ombudsman also found the Financial Conduct Authority (FCA) guidance on SIPP monitoring was not applicable in this particular case. 

This is being disputed by the solicitors on the grounds that it conflicted with FCA's stated position in a similar case, which supported a claim against a pensions firm. News of the legal action comes as STM Group confirmed it has mounted a takeover bid for Carey Pensions.